Summary: Metropolitan Transportation Authority, New York; Gas Tax; Joint Criteria; Note

S&P Global Ratings assigned its 'SP-1+' short-term rating to the Metropolitan Transportation Authority (MTA), N.Y.'s approximately $750 million series 2019A dedicated tax fund (DTF) bond anticipation notes (BANs). At the same time, we affirmed our 'AA' long-term and underlying ratings on the MTA's outstanding DTF bonds. The outlook is stable. We also affirmed our 'AAA/A-1+' rating on the series 2008A-1 DTF variable-rate refunding bonds based on a joint support with a letter of credit (LOC; for more information on this series, please refer to our analysis, published June 13, 2017, on RatingsDirect) and affirmed our 'AA+/A-1' rating on the series 2002B-1 DTF variable-rate bonds based on a joint support with a LOC (for more information on this series, please refer

...The stable outlook on the bonds reflects our expectation of consistent levels of support from the state for transportation funding. The level of the taxes pledged and forecast borrowing will weigh heavily in our future rating analysis should the state decrease its level of appropriation from the MTTF and MMTOAF to balance the general fund budget, if the need arises. If there were changes to the appropriation structure in place or reduced flow of revenues to the dedicated tax fund, this could negatively pressure the rating. Although we do not expect to raise the rating based on the current credit structure in place and level of debt outstanding, a higher rating would require strengthening the revenue structure such that revenue could not be diverted to other funds for other programs. There is also limited upward potential given the linkage to the obligor's creditworthiness, the State of New York. Should we raise or lower our GO rating on the state of New York, the rating on these bonds would...

Summary