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N.Y. MTA Gives New Bondholders Haven From Subway Ridership Drop

  • Bond sale grabs higher credit ratings than MTA farebox credit
  • MTA eyeing another $1.3 billion PMT deal later this year
Passengers wearing protective masks ride the L subway train in New York.

Passengers wearing protective masks ride the L subway train in New York.

Photographer: Nina Westervelt/Bloomberg

By one estimate, one-fifth of those who used to ride the New York Metropolitan Transportation Authority’s subways, buses and commuter trains everyday are unlikely to come back even after the pandemic as remote work catches on.

Yet that won’t be a major risk for the buyers of $1.3 billion of bonds the MTA is selling this week.