New York’s Metropolitan Transportation Authority (MTA) is the largest public transport authority in the United States, but its budget deficit and lack of liquidity have become a growing crisis for the organization, state and local government and the city’s residents.
High leverage and poor operating results have translated to projections that MTA is $38 billion in debt and may be at risk of further downgrades – thus, bondholders should think twice before buying.
In this article, we will look at the MTA’s current situation, what happened to its credit rating and what these factors mean for municipal bond investors.
municipalbonds.com
by Justin Kuepper
Mar 29, 2018