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; * Substantial liquid reserves totaling over $1.1 billion; * The metropolitan New York/New Jersey region's strong demand for the authority's services; * Solid financial operations, overall profitability, and debt service coverage; and * A comprehensive $6.2 billion capital plan. Standard&Poor's has credit concerns with the following: * Land lease negotiations with New York City over the property on which John F. Kennedy International Airport and LaGuardia International Airport are located, * Port dredging projects that will impact maritime operations' profitability and competitive positioning; * Management and ultimate resolution over operation of
