Fitch Ratings has affirmed the rating for Valley Metro’s outstanding tax-exempt bonds as AA with a stable outlook.
In affirming the rating, Fitch cited the sound long-term economic outlook for the region and Valley Metro’s flexibility in managing its capital program.
“Through the recession, Valley Metro was able to defer fleet replacements and build up a cash balance to meet the upcoming capital needs,” said John McCormack, Valley Metro Chief Financial Officer. “The annual Transit Life Cycle Program (TLCP) evaluates the long range program of projects to ensure revenues and expenditures are balanced. The TLCP plans the minimum amount of debt necessary to meet the agency’s commitment to deliver the capital projects that Maricopa County voters approved in 2004.”
Valley Metro has limited plans for issuing additional debt as Proposition 400 approaches the halfway point of its 20-year authorization. In 2004, Maricopa County voters approved to continue a one-half cent sales tax through Dec. 31, 2025 to improve transportation infrastructure and public transit services.
Fitch cited the limited additional debt and the continuing high debt service coverage, well above the minimum required by policy, as additional support in affirming the AA rating.
