Press Release|Public Finance
KBRA Assigns AAA Rating to Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Bonds Series 2024A (Green Bonds) and Refunding Series 2024B (Green Bonds); Affirms Rating for Parity Bonds
16 Apr 2024 | New York
KBRA assigns a long-term rating of AAA to the Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Bonds, Series 2024A (Green Bonds) and Sales Tax Revenue Bonds, Refunding Series 2024B (Green Bonds). KBRA additionally affirms the long-term rating of AAA for outstanding parity Sales Tax Revenue Bonds. The Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Pledged revenues provide ample coverage of Sales Tax Revenue Bond maximum annual debt service and a substantial source of recurring financial support for capital and operating needs through 2057.
- Favorable demographic trends and socio-demographic characteristics of the pledged revenue base are supportive of growth and stability of pledged receipts.
Credit Challenges
- Pledged receipts have moderate sensitivity to economic cycles.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- A significant decline in debt service coverage due to very large increases in sales tax bond leverage accompanied by significant and prolonged deterioration in the sale tax base.
To access rating and relevant documents, click here.