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 and New Jersey for the authority's services and facilities; Solid financial operations, overall profitability, and debt service coverage; and A substantial five-year capital improvement program (CIP) in excess of $9 billion, which is in the process of being reviewed by the Board of Commissioners. Credit concerns include: Increased political tension at the state level that delayed the approval and implementation of the Port Authority's significant capital program, which is expected to be primarily debt financed (65%);
