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DRPA Announces Bond Rating Upgrades by Moody's Investors Service on its 2008B and 2010B Revenue Refunding Bonds
Rating Agency once again recognizes the Authority’s strong fiscal management
CAMDEN, NJ - The Delaware River Port Authority (DRPA), today announced that Moody’s Investors Service has upgraded its ratings on the DRPA’s two variable rate debt issues backed by bank letters of credit. The 2008B Revenue Bonds were increased to “Aa1” from “Aa2,” while the 2010B Revenue Bonds were upgraded to “Aa3” from “A1”.
In announcing the ratings upgrades, Moody’s pointed to its annual review of the “joint default analysis” (JDA) which reflects Moody’s approach to rating “jointly supported transactions” such as LOC-backed bonds. The JDA rating assigned to the DRPA bonds resulted in a decrease in the default dependence between the Bank and the DRPA from moderate to low, which results in credit risk consistent with JDA rating of “Aa3” for the bonds.
These most recent ratings upgrades follow similar good news announced in October 2017 when Moody’s upgraded the underlying rating on all of the Authority’s long-term bond debt, increasing the ratings on the Authority’s Revenue Bonds to “A2” from a previous rating of “A3”, and upgrading the Authority’s Port District Project Bonds to “Baa2 from “Baa3”, both with a stable outlook.
At that time, Moody’s pointed to positive momentum in bridge traffic volumes, the DRPA’s strong liquidity position and reserves, good expenditure control, and the Authority’s ability to execute and fund its 5-year Capital Plan through its internally generated and “pay-go” capital funds, with no additional debt financing.
“We have worked hard over the past decade to demonstrate our commitment to prudent stewardship over our financial assets,” said James M. White, DRPA Chief Financial Officer/Treasurer. “We are pleased that the ratings agencies have particularly, in the past several years, recognized the strength of the Authority’s financial condition and performance.”
To view the Moody’s Investors Service report, please click here.
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