The storm surge and high winds from Superstorm Sandy in October 2012 wreaked havoc on New York Metropolitan Transportation Authority (MTA) and Port Authority of New York and New Jersey (PANYNJ) transportation facilities. However, despite the significant disruptions, most MTA services resumed relatively quickly. Similarly, all of the PANYNJ-operated facilities returned to full operation within less than a week in most cases.
As a result, the credit quality of both of these essential transportation infrastructure providers did not suffer, Standard & Poor's Ratings Services said in a report released today.
"We believe these operators' strong contingency plans, along with their good liquidity positions, ability to obtain additional interim borrowing capacity, and actions to reinforce steady financial performance, and our expectation of insurance proceeds and federal aid demonstrated effective management and mitigated our concerns about the storm's financial fallout," said Standard & Poor's credit analyst Joseph Pezzimenti in the report, entitled "New York-Area Transportation Infrastructure Providers Passed The Superstorm Sandy Credit Test."
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