OREANDA-NEWS. S&P Global Ratings assigned its 'AA-' long-term rating to the Metropolitan Transportation Authority (MTA), N. Y.'s $56.12 million subseries 2016C-2a (fixed rate) and $273.54 million subseries 2016C-2b (mandatory tender bonds) transportation revenue bonds (TRBs). The MTA is issuing these bonds at the same time it is issuing the subseries 2016C-1 bonds, the proceeds of which will retire the authority's 2015B-1 bonds (for more information on the 2016C-1 bonds, see the analysis published July 11, 2016, on RatingsDirect).

In addition, S&P Global Ratings affirmed the following ratings:Its 'AA-' issuer credit rating and 'aa-' stand-alone credit profile on the MTA;Its 'AA-' long-term rating and underlying rating on the authority's previously issued TRBs;Its 'SP-1+' short-term rating on the MTA's previously issued transportation revenue bond anticipation notes; and Its 'AAA/A-1+', 'AA+/A-1', and 'AA/A-2' ratings on the authority's various other TRBs outstanding that reflect the application of our joint criteria assuming low correlation. The outlook, where applicable, is stable.

"In part, the ratings reflect our view of the MTA's very low industry risk, extremely strong economic fundamentals, and extremely strong market position," said S&P Global Ratings credit analyst Joseph Pezzimenti.

Proceeds from the 2016C-2a and 2016C-2b bond proceeds will, together with other MTA funds, refund some TRBs outstanding.

The MTA's economic fundamentals and market position are both extremely strong. Population growth from 2010 to 2014 was good, at 3.3% overall, with employment growth very strong at 8.1%. Ridership during 2010 to 2015 grew a healthy 4.7% overall despite just slight 0.3% growth in 2015, which was partially because of winter storms. Subway ridership alone grew 0.6% in 2015, while bus ridership was down 2.5%. The authority's forecast indicates ridership growth of 1.7% in 2016 and 0.5% in 2017.

The stable outlook reflects our expectation that the MTA will maintain an extremely strong enterprise risk profile and strong financial risk profile.

We are unlikely to raise the rating during the next two years, given the agency's significant capital needs and limited projected upside in debt service coverage (DSC) or liquidity.

We could lower the rating in the next two years if demand falls short of the forecast, liquidity decreases materially, or DSC falls to levels we consider weak.