For Immediate Release: 09/26/24
Contact: Office of Media Relations and Communications | (518) 471-5300 | public.info@thruway.ny.gov
THRUWAY AUTHORITY ANNOUNCES UPGRADES BY MOODY’S RATINGS
Moody’s Ratings Upgrades Authority’s Senior Lien to Aa3 and Junior Lien to A1
S&P Global Ratings Affirms Authority’s Long-Term General Revenue Bonds at A+
Financial Ratings Reaffirms Authority’s Continued Commitment to Financial Resilience
The New York State Thruway Authority today announced upgraded financial ratings from Moody’s Ratings, reaffirming the Thruway Authority's continued commitment to financial resilience and reinvesting toll dollars to ensure the continued viability of the Thruway system. Moody’s cited the increased certainty of the Authority's future financial profile as well as the Authority’s Capital Program which commits $2.4 billion in investments over the next five years across its 570-mile system statewide.
In its September 24 report, Moody’s upgraded the Thruway Authority's ratings of the outstanding General Revenue Bonds encompassing approximately $3.5 billion to Aa3 from A1, upgraded the ratings of outstanding General Revenue Junior Indebtedness Obligations encompassing approximately $2.5 billion to A1 from A2 and assigned an Aa3 rating to the Authority’s proposed $520 million General Revenue Refunding Bonds, Series Q. Moody’s also revised the outlook to stable from positive.
In addition, in its September 25 report, S&P Global Ratings affirmed their A+ long-term rating to the Authority's outstanding General Revenue Bonds and assigned an A+ long-term rating to the Authority’s proposed General Revenue Refunding Bonds, Series Q. S&P affirmed their A long-term rating on the Authority's General Revenue Junior Indebtedness Obligations. S&P left the Authority’s financial outlook on all ratings unchanged at stable.
Thruway Authority Executive Director Frank G. Hoare, Esq. said, “The recent upgrades in financial ratings and improved outlook by Moody’s validates the Thruway Authority’s commitment to sustaining a strong financial strategy that supports the Thruway system's ongoing viability. The multi-year toll adjustment implemented in January 2024 has resulted in an increase of more than $500 million in planned investments for the Thruway’s Capital Program, aimed at modernizing the 70-year-old infrastructure.”
Thruway Authority Board of Directors Chair Joanne M. Mahoney said, “I commend Thruway Authority staff for their efforts to maintain a responsible fiscal plan that is balanced and prioritizes the enhancement of the Thruway system, while continuing with an affordable tolling structure. Their commitment to financial responsibility ensures that our infrastructure remains safe, reliable and efficient, benefiting not only current users but also future travelers.”
ABOUT THE THRUWAY AUTHORITY
The Governor Thomas E. Dewey Thruway, built in the early 1950s, is one of the oldest components of the National Interstate Highway System and one of the longest toll roads in the nation. The maintenance and operation of the Thruway system is funded primarily by tolls. The Thruway Authority does not receive any dedicated federal, state or local tax dollars and is paid for by those who drive the Thruway, including one-third of drivers from out-of-state.
The Thruway is considered one of the safest roadways in the country with a fatality rate far below the nationwide index, and toll rates are among the lowest in the country compared to similar toll roads. The Thruway’s base passenger vehicle toll rate is less than $0.05 per mile, compared to the Ohio Turnpike ($0.06 per mile), the New Jersey Turnpike ($0.11 and $0.31 per mile) and the Pennsylvania Turnpike ($0.14 per mile).
The Authority’s 2024 Budget invests a total of $451 million to support its Capital Program, which is expected to invest $2.4 billion into capital projects over the next five years — a $500 million increase following the enacted toll adjustment that went into effect on January 1, 2024. The increased investment will lead to work on approximately half of the Thruway’s more than 2,800 lane miles as well as projects on approximately 90 of Thruway’s 817 bridges.
INCREASE IN INFRASTRUCTURE IMPROVEMENT INVESTMENTS
As announced in November 2023, the Thruway Authority is using the toll adjustment that went into effect in January 2024 to increase its planned investment in capital projects by nearly $500 million or 25 percent over the next five years.
The Thruway Authority has committed to invest $2.4 billion over the next five years for Thruway Authority Capital Program projects across its 570-mile system statewide.
The increased investment is projected to lead to work on approximately half of the Thruway’s more than 2,800 lane miles as well as projects on approximately 90 of Thruway’s 817 bridges. Bridge work will include replacements, rehabs, paintings, joint replacements and vertical clearance improvements.
FEDERAL GRANT APPLICATIONS
Although the Thruway Authority did not receive any part of the $13.5 billion in formula funding allocated to New York through the Infrastructure Investment and Jobs Act, the Authority has applied for and secured more than $64 million of federal funding from competitive grant programs funded by the Bipartisan Infrastructure Law since 2021.
Earlier this month, Governor Kathy Hochul announced the start of a $38.2 million bridge superstructure rehabilitation and resiliency project on the historic Castleton-On-Hudson Bridge over the Hudson River connecting Albany and Rensselaer counties. The project is being partially funded by a $21 million federal grant that was awarded to the Thruway Authority in April 2023 for their 2022 grant application to restore the Castleton-on-Hudson Bridge as part of the U.S. Department of Transportation's Federal Highway Administration Bridge Investment Program.
In April 2024, the Thruway Authority was awarded a $39 million federal grant for infrastructure enhancements at the South Grand Island Bridges in Western New York. The original Grand Island bridges were constructed in 1935 and will undergo strengthening and essential upgrades to make them more resistant against seismic loading caused by an earthquake.
Since passage of the BIL, the Authority has prepared and submitted comprehensive funding applications. An updated list of applications and results can be found at thruway.ny.gov.
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