The rating on the Port Authority of New York and New Jersey's consolidated bonds reflects: A first lien on a strong and diverse pledged revenue stream with substantial liquid reserves totaling more than $1.6 billion available to bondholders; Strong demand in metropolitan New York/New Jersey for the authority's services and facilities; and Solid financial operations, overall profitability, and debt service coverage. Credit concerns include: Increased political tension at the state level that delayed the approval and implementation of the Port Authority's significant long-term $6 billion capital program, which is expected to be primarily debt financed (65%); and Deficit operations at some of the Port Authority's facilities, including the Port Authority Trans-Hudson Corp. (PATH) system, the bus terminals, and some of
