Fitch Ratings agency downgraded the MTA’s credit rating Thursday, citing the cash-strapped transit agency’s “higher than expected” financial pressure, based on its analysis of the MTA’s most recent budget, which heavily relies on borrowing more money to keep the system running.
“It is Fitch’s opinion that the MTA will face significant challenges related to meeting the plan over the next several years,” the ratings agency said yesterday. The one-notch credit downgrade could mean higher interest rates for the MTA in the future, Chad Lewis, a director at Fitch said.
The MTA believes the impact on future borrowing costs “would be minimal,” spokesman Aaron Donovan said in an email yesterday.
“While a downgrade is never welcome news, we believe the strength of the credits remains fundamentally secure,” he said.