Port Authority rating cut one level by Moody’s on debt load
The Port Authority of New York and New Jersey’s credit rating was cut one level by Moody’s Investors Service, which said the agency needs $2 billion in additional funds through 2016, primarily for the World Trade Center, and faces “significant growth” in capital needs.
Moody’s lowered the ratings for the agency that runs the New York City region’s three major airports, two Hudson River tunnels, four bridges and six marine-cargo terminals to Aa3, its fourth-highest rating, from Aa2. The action, which affected $18.2 billion in bonds, comes as the authority prepares to issue $2 billion in taxable debt this week.
“The increasingly back-loaded amortization of debt with this issue, while providing more debt capacity and stable financial metrics in the near and medium term, increases longer- term risks,” Moody’s said in a news release. The company gives the authority’s credit a stable outlook. (Braun, Bloomberg)