Transportation
US Public Transit Systems Face Credit Downgrades as Riders Stay Away
- S&P downgraded San Francisco’s BART to A+ from AA last week
- Downgrades could lead to higher borrowing costs for operators
A commuter on a Bay Area Rapid Transit (BART) train in San Francisco.
Photographer: David Paul Morris/BloombergUS public transit systems have faced a slew of challenges from trying to bring riders back after a pandemic-induced slump to struggling with financial shortfalls. The latest hurdle will be trying to avoid credit-rating downgrades that will make borrowing more expensive.
California’s Bay Area Rapid Transit District had its credit rating lowered two-notches to A+ by S&P Global Ratings last week. That revision also cited a negative outlook on its score, indicating future downgrades may be likely.