Credit Agency Affirms SFMTA Revenue Bonds as Highest in Nation for a Transit Agency
Standard & Poor’s (S&P) has affirmed an “AA” long-term rating on the San Francisco Municipal Transportation Agency (SFMTA). The “AA” rating is currently the highest rating on revenue bonds or certificates issued by a transit agency in the United States. The next revenue bond issued by the SFMTA, which is expected to be sometime in the next year, will benefit from lower debt service as a result of the rating affirmation.
“The highest ever credit ratings for our City’s transportation agency are a direct result of San Francisco’s strong, diverse economy and fiscally responsible budgetary and financial controls,” said Mayor Ed Lee. “San Francisco is making investments in our transportation infrastructure every day, and at the same time restoring investor confidence that is backed by smart policies and responsible governance.”
Tom Nolan, Chairman of the SFMTA Board of Directors, commented: “Having the highest rating on revenue bonds in the nation is another example of this city’s investment and commitment to quality, sustainable and innovative transportation. The MTA Board is proud of the smart choices, policies and practices put in place to set a strong financial foundation for transportation in San Francisco.”
S&P highlighted several factors that account for the SFMTA’s credit rating, including:
- Strong management practices and policies;
- Consistent revenues;
- Stable rate of demand for services; and
- The strength of the city and regional economies.
“Strong economic fundamentals and smart fiscal management is continued proof that San Francisco’s transportation infrastructure is a sound investment,” said SFMTA Director of Transportation, Ed Reiskin. “We will continue to work extremely hard to make responsible decisions that ultimately benefit those who rely on attractive transportation options in this city.”
Standard & Poor’s, or S&P, assigns credit ratings from BBB (adequate) to AAA (extremely strong). S&P has raised SFMTA ratings twice since 2014 from A to AA- and then to AA demonstrating the increased strength of the Agency.
Copies of the detailed ratings are available on the SFMTA website under Investor Relations.