MTA Finances Weakening From Bad to Worse With Sandy: Muni Credit
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As if the flooded tunnels and crippled subways left by superstorm Sandy weren’t enough, New York’s Metropolitan Transportation Authority may see the penalty on its debt increase in a sale this week.
The biggest U.S. mass transit system, which normally serves 8.5 million weekday riders through subways, buses and commuter trains, plans to issue $870 million of bonds for capital projects and refinancing. Since the storm hit Oct. 29, the extra yield investors demand on some agency debt is three times the average of the previous four weeks, according to calculations by Bloomberg using Municipal Securities Rulemaking Board data for trades of all sizes.