The rating on the Port Authority of New York and New Jersey's consolidated bonds and notes 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. Credit concerns include: * Land lease negotiations with the city of New York over the property on which John F. Kennedy International and LaGuardia International airports are located, * Port dredging projects impacting maritime profitability and competitive positioning, * Management and resolution over operation of the World Trade Center, and * Marginal
