Trimess

Monday, May 16, 2011

Standard&Poor rate Trimet an "A"

How can a non profit governmental unit be rated by a company that serves business?

SAN FRANCISCO (Standard&Poor's) May 16, 2011-- Standard&Poor's Ratings Services assigned its 'A' rating to Tri-County Metropolitan Transportation District (TriMet), Ore.'s $130.3 million series 2011A and 2011B capital grant receipt revenue bonds. Additionally, Standard&Poor's affirmed its 'A' long-term and underlying rating (SPUR) on TriMet's capital grant receipt revenue bonds series 2005. The outlook on all bonds is stable. "The ratings reflect our view of the TriMet system's essentiality to the Portland metropolitan area and the pledge of historically stable federal transportation funds," said Standard&Poor's credit analyst Robert Hannay. The bonds are secured by a pledge of TriMet's Federal Transit Administration (FTA) Section 5307 urbanized area formula fund receipts and federal grant funds transferred

1 comment:

Erik H. said...

The issue isn't how well the transit system functions, it's their credit rating.

Since TriMet hasn't defaulted on repayings its bonds (loans), and has managed so far to keep revenue coming in, it maintains its' "A" credit rating.

Of course this comes at a cost: running foolish bus lines like the 84 to Boring just to retain the property tax and payroll revenue; cut bus service to the bone but as long as one scheduled trip runs on the route each day, anyone within 2.5 miles of the bus route is taxed.