RTA Maintains Strong Bond Rating and Plans $100 Million Investment in State of Good Repair
January 17, 2014
The Board of Directors of the Regional Transportation Authority (RTA) recently authorized issuance of up to $100 million of 30-year general obligation RTA bonds to finance multiple State of Good Repair projects to bolster the condition of the region’s transit infrastructure.
In January, 2014, all three of the nation’s major bond rating services rated the RTA double-A with stable outlooks. The ratings demonstrate the agency’s commitment to a balanced budget and its strength in providing necessary fiscal leadership for transit in the region. Fitch affirmed the agency’s AA rating and upgraded the RTA from negative outlook to stable outlook; Moody’s affirmed the agency’s Aa3 rating and affirmed its stable outlook; and S&P affirmed the RTA’s AA rating and affirmed its stable outlook.
“State and Federal dollars are not sufficient to support our capital needs, so the RTA is using its bonding authority to keep our region in a state of good repair,” said RTA Board Chairman John S. Gates, Jr. “Our region needs approximately $33 billion to bring the existing system to a state of good repair. The RTA is meeting a portion of the need with this bond issuance. The recent favorable reports from the three ratings services only reinforce the importance of the RTA and its ability to benefit the region in this way.”
The bonding will fund projects that benefit the region’s public transit riders through enhancements to CTA, Metra and Pace capital assets, specifically tied to State of Good Repair, in the following categories:
Qualifying projects would include:
To read the press releases issued by the three rating services, please visit http://rtachicago.com/about-the-rta/investor-relations.html and see Rating Agency Reports.