KBRA Assigns AAA Rating to Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Bonds Series 2024A (Green Bonds) and Refunding Series 2024B (Green Bonds); Affirms Rating for Parity Bonds
April 16 2024 - 1:08PM
Business Wire
KBRA assigns a long-term rating of AAA to the Metropolitan
Atlanta Rapid Transit Authority Sales Tax Revenue Bonds, Series
2024A (Green Bonds) and Sales Tax Revenue Bonds, Refunding Series
2024B (Green Bonds). KBRA additionally affirms the long-term rating
of AAA for outstanding parity Sales Tax Revenue Bonds. The Outlook
is Stable.
Key Credit Considerations
The rating actions reflect the following key credit
considerations:
Credit Positives
- Pledged revenues provide ample coverage of Sales Tax Revenue
Bond maximum annual debt service and a substantial source of
recurring financial support for capital and operating needs through
2057.
- Favorable demographic trends and socio-demographic
characteristics of the pledged revenue base are supportive of
growth and stability of pledged receipts.
Credit Challenges
- Pledged receipts have moderate sensitivity to economic
cycles.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- A significant decline in debt service coverage due to very
large increases in sales tax bond leverage accompanied by
significant and prolonged deterioration in the sale tax base.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Special Tax Revenue Bond Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1003985
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Analytical
Peter Scherer, Senior Director (Lead Analyst) +1 646-731-2325
peter.scherer@kbra.com
Mallory Yu, Senior Analyst +1 646-731-1380
mallory.yu@kbra.com
Douglas Kilcommons, Managing Director +1 646-731-3341
douglas.kilcommons@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com