FOR IMMEDIATE
RELEASE
February 16, 2023
MARTA EARNS PERFECT ‘AAA’ CREDIT
RATING FROM TOP CREDIT AND BOND RATING AGENCIES
‘AAA’ Rating From S&P
and Kroll Shows MARTA’s Exceptionally Strong Capacity for Payment of Financial
Commitments
ATLANTA
- The Metropolitan Atlanta Rapid Transit Authority (MARTA) has received an AAA
credit rating, the highest rating issued, from Standard & Poor’s (S&P)
and Kroll Bond Rating Agency. AAA-rated
bonds have a high degree of creditworthiness and illustrate MARTA’s ability to
easily meet its financial commitments with the lowest risk of default.
“This
exceptional credit rating from both S&P and Kroll reflects MARTA’s strong
fiscal management and is further proof that sales tax revenue is expanding due
to the growth in this region. An AAA rating underscores the strength of our
long-term revenue growth, substantial and growing reserve balances, and shows
we are well-positioned to increase our competitiveness for federal funding and
meet the expansion commitments made to our jurisdictional partners,” said MARTA
General Manager and CEO Collie Greenwood.
In fiscal year 2022, MARTA’s sales tax revenues
reached an all-time high of $665 million, and sales tax revenues for the first
six months of fiscal 2023 are up 9.1 percent year-over-year and forecasted to
be $708.4 million. MARTA reported a $729 million reserve balance for fiscal
year end 2022, and ten consecutive years of operating surpluses.
“The timing of these rating increases couldn’t
be better as we are planning to refinance two bonds in coming months. The AAA
credit rating will help lower our borrowing costs to potentially save even more
than previously projected,” added MARTA Chief Financial Officer Raj Srinath.
“At the end of the day, we expect the projects in our Capital Improvement
Program to be fully funded while still maintaining a high debt-service coverage
ratio.”
“An
AAA bond rating places MARTA at the top of national transit agencies in terms
of financial health,” said MARTA Board of Directors Chair Thomas Worthy. “That
this perfect rating comes on the heels of a global pandemic that negatively
impacted the transit industry speaks volumes about the strength of MARTA’s
financial management and planning, and reassures our customers, investors, and
partner jurisdictions that we can and will make good on our promises.”
###