NEW YORK (S&P Global Ratings) --S&P Global Ratings has assigned its 'AA-' rating to the Port Authority of New York & New Jersey's (PANYNJ) pro forma $727.5 million, 205th series; and $100 million, 206th series consolidated bonds. The outlook is stable. At the same time, S&P Global Ratings affirmed its ratings on authority debt outstanding. "The 'AA-' ratingreflects our opinion of the diversity of the PANYNJ's operations, very strong liquidity, and vital role in the region; and our expectation of continued strong DSC," said S&P Global Ratings credit analyst Joseph Pezzimenti. The new bonds will be on par with all other consolidated bonds. The 205th series bond proceeds will refund the authority's 149th series and to fund capital projects or refund other obligations. The 206th series bonds proceeds will fund capital projects or refund other PANYNJ obligations. For 2016, the combined revenue passengers for PANYNJ's three major airports -- John F. Kennedy International Airport, LaGuardia Airport, and Newark Liberty International Airport -- totaled a record 129 million, up about 5.1% from 2015. The combined traffic on the PANYNJ's tunnels and bridges -- George Washington Bridge, Holland Tunnel, Lincoln Tunnel, and Staten Island Bridges -- in 2016 was nearly 118.8 million, up 2.4% from 2015, marking the second consecutive year-over-year increase after seven straight years of declining or relatively flat traffic levels. Management attributes the growth to generally good economic conditions, lower fuel prices, and generally favorable employment trends. We understand that preliminary estimated financial and operational results through May are tracking close to budget. The stable outlook reflects our opinion of the strong regional essentiality of the PANYNJ's facilities. The outlook also reflects our assessment of management's ability to adjust revenue, expenses, and capital spending accordingly to protect sound financial operations while ensuring the authority maintains key revenue-generating assets sufficiently. We do not expect to raise the ratings during the next two years due to the authority's significant capital needs. We could lower the ratings in the next two years if the agency's liquidity and financial margins were to erode considerably. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria.