Press Release  MassDOT Announces Upgrade to Metropolitan Highway System’s Senior Revenue Bonds

Boston — The Massachusetts Department of Transportation (MassDOT) is pleased to announce internationally recognized bond credit rating company, Moody’s Ratings, has upgraded the Metropolitan Highway System’s (MHS) Senior Revenue Bonds, moving the rating up two levels, from A2 to Aa3.  Along with the new Aa3 rating, Moody’s has determined the “outlook is stable.”

“This rating upgrade should reassure the public that we are on the right trajectory with our budget for the Metropolitan Highway System,” said Transportation Secretary and CEO Monica Tibbits-Nutt.  “Moody’s expert analysis is valued and respected worldwide, and we are very pleased our financial management of the Metropolitan Highway System has been determined to be sound and that its liquidity profile is solid.”

MassDOT Chief Financial Officer David Pottier added, “We are pleased Moody’s Ratings believes in our ability to sustain the current liquidity profile while we continue to make major investments in the infrastructure for the Metropolitan Highway System assets. We are further pleased that Moody’s noted the important role of the governance of the MassDOT Board of Directors in achieving this upgrade.  We are grateful for the review that was conducted and for the two notch rating upgrade.”

In announcing the upgrade, Moody’s stated, in part, that the upgrade, “reflects a track record of sound governance and financial performance of MHS and large contract assistance payments from the state which diminish bondholders' exposure to toll revenue volatility. The MHS currently has around $1.3 billion of bonds outstanding, of which $641 million are senior lien revenue bonds, and the balance are subordinated lien revenue bonds, rated Aa2 stable.”  The ratings service added, “Governance is a key driver for the rating action and reflects the support by the state through contract assistance payments and the close relationship with the state as all board members are selected by the governor.”

The Metropolitan Highway System (MHS) is managed by MassDOT and includes:

• The area of I-90, (the Turnpike), east of Route 128, (the Boston Extension),
• The three tunnels (Sumner, Callahan and Ted Williams), and,
• The Tobin Bridge, as well as the existing Central ArteryNorth Area (CANA) and the Central Artery. 

The MHS transportation network consists of almost 250 lane miles of roadway, of which approximately two thirds are tolled. Tolled facilities include the Ted Williams Tunnel, Sumner/Callahan Tunnel System and the Boston Extension. 

The MHS network also includes 227 bridges and viaducts and seven major tunnel structures, (three under Boston Harbor: Ted Williams, Sumner and Callahan; I-93 northbound and southbound tunnels, I-90 connector tunnel under Fort Point Channel and through South Boston, CANA tunnel beneath City Square through Charlestown).

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