Hudson Yards Infrastructure Corp., NY 2012 Ser A Bond Rating Raised Two Notches To 'AA-' On Higher Debt Service Coverage

NEW YORK (S&P Global Ratings) May 18, 2017--S&P Global Ratings raised its rating on Hudson Yards Infrastructure Corp. (HYIC), N.Y.'s outstanding fiscal 2012 series A first-indenture senior revenue bonds two notches to 'AA-' from 'A'. At the same time, we assigned our 'A+' long-term and underlying ratings on HYIC's fiscal 2017 series A (tax exempt) and B (taxable) second-indenture revenue bonds. The outlook is stable. "The upgrade on the series 2012 series A first-indenture senior revenue bonds reflects increased debt service coverage from multiple revenue streams pledged for repayment, as well as a closed first indenture," said S&P Global Ratings credit analyst Anne Cosgrove. We also note there has been significant development activity in Hudson Yards since the project's inception.

...NEW YORK (S&P Global Ratings) May 18, 2017--S&P Global Ratings raised its rating on Hudson Yards Infrastructure Corp. (HYIC), N.Y.'s outstanding fiscal 2012 series A first-indenture senior revenue bonds two notches to '##-' from 'A'. At the same time, we assigned our 'A+' long-term and underlying ratings on HYIC's fiscal 2017 series A (tax exempt) and B (taxable) second-indenture revenue bonds. The outlook is stable. "The upgrade on the series 2012 series A first-indenture senior revenue bonds reflects increased debt service coverage from multiple revenue streams pledged for repayment, as well as a closed first indenture," said S&P Global Ratings credit analyst Anne Cosgrove. We also note there has been significant development activity in Hudson Yards since the project's inception. HYIC has not had to rely on city interest support payments in fiscal years 2016 and 2017 and we expect recurring and nonrecurring revenues to be sufficient over the next few years to cover debt service. The series...

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