Standard & Poor’s Ratings Services has assigned its ‘AA-’ rating to the Port Authority of New York and New Jersey’s (PANYNJ) 184th series and 185th series consolidated bonds. At the same time, Standard & Poor’s affirmed its ‘AA-’ ratings on the PANYNJ’s existing consolidated bonds and its ‘A-1+’ short-term rating on the authority’s estimated $397.4 million in commercial paper (CP) notes of Standard & Poor’s also affirmed its ‘AA-’ rating on the series 1WTC-2011 New York Liberty Development Corp.‘s liberty revenue bonds, which are on par with all of the PANYNJ’s consolidated bonds. In addition, Standard & Poor’s affirmed its ‘A+’ rating on the series 2011 liberty revenue bonds (issued for the 4 World Trade Center [WTC] LLC project) paid from the authority’s consolidated bond reserve (CBR) fund. The outlook on the long-term ratings is stable.
“The ‘AA-’ rating reflects our opinion of the diversity of the PANYNJ’s operations, its very strong liquidity, its vital role in the region, and our expectation of continued strong debt service coverage,” said Standard & Poor’s credit analyst Peter Murphy.
Bond proceeds will or refund PANYNJ obligations outstanding.
The PANYNJ is a critical transportation link in the New York and New Jersey region, operating the area’s three major airports, key bridge and tunnel crossings between the two states, and various marine terminals.
The stable outlook reflects our view of the strong regional essentiality of the agency’s facilities. The outlook also reflects our assessment of management’s ability to adjust revenues, expenses, and capital spending accordingly to protect sound financial operations, while ensuring that the authority maintains key revenue-generating assets sufficiently. We could lower the ratings if the PANYNJ’s liquidity and financial margins erode considerably. We do not expect to raise the ratings during the next two years due to the authority’s significant additional debt needs