MESSAGE
| DATE | 2020-04-07 |
| FROM | Ruben Safir
|
| SUBJECT | Subject: [Hangout - NYLXS] who is paying for all this - MTA bonds
|
New York MTA Chief Wants Federal Aid to Make Bond Payments
By Michelle Kaske
Updated on
Largest U.S. mass-transit provider owes $45.3 billion
Foye says in radio interview he expects payments will be made
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New York’s Metropolitan Transportation Authority needs more help from
the federal and state governments to ensure it can keep paying
bondholders as ridership plummets because of the coronavirus, agency
head Pat Foye said Tuesday.
“We expect to make every principal and interest payment -- we’re not
asking for forgiveness from our creditors,” he said during an appearance
on The Brian Lehrer Show on WNYC.
Patrick Pat Foye
Pat Foye
Photographer: Mark Lennihan/AP via Shutterstock
“We’re obviously one of the largest borrowers in the muni market and the
MTA making its principal and interest payments is incredibly helpful to
the overall market,” said Foye, who is recovering from Covid-19. “To be
able to do that, we’re going to need additional support from the federal
government and we’re going to have to come up with a plan that we’re
hard at work on, which will also include some non-financial legislative
changes in Albany.”
The MTA, which runs the nation’s largest public transportation system,
has seen subway ridership fall nearly 90% and the number of passengers
on its Metro-North Railroad has fallen 94%. The agency is losing an
estimated $125 million each week in fare and toll revenue, leading it to
boost its short-term loan capacity to $3 billion from $1 billion to help
raise cash.
Following Foye’s WNYC interview, the MTA issued a statement saying it
has sufficient funds to cover debt-service payments.
“MTA has sufficient liquidity and resources to fund its debt service
accrual requirements even as the ongoing COVID-19 crisis has put
significant strain on MTA’s financial condition, and we are committed to
continuing disclosure of material events on a timely basis,” Bob Foran,
MTA’s chief financial officer, said in a statement.
Congress approved $25 billion for mass-transit systems throughout the
U.S. in its $2 trillion economic stimulus package. The MTA, which has
more than $45 billion of debt outstanding, will receive $4 billion of
those funds to help cover lost revenue and growing expenses.
The agency is working on a “survival financing plan” to help it going
forward, Foye said. The MTA tapped $1 billion of bank loans this month.
It has about $3.8 billion of liquidity resources, including the bank
loans, a cash balance of $1.2 billion and internal flexible funds of
$1.2 billion.
S&P Global Ratings last week downgraded the MTA one step to A-, the
fourth-lowest investment grade, due to the financial challenges the
agency faces from the pandemic. Moody’s Investors Service is reviewing
the agency for a potential downgrade.
MTA debt that comes due in November traded for a little over 100 cents
on the dollar Tuesday to yield about 3.9%, according to data compiled by
Bloomberg, indicating little concern among investors that they won’t be
repaid.
The MTA has fewer workers to help run the system because 582 employees
have tested positive for the coronavirus and eight workers have died,
according to Foye. The agency started a 50/50 program where half of its
employees are working and the other half are at home, he said.
The MTA started a reduced service on Wednesday. While there are fewer
healthy workers to keep running the system, Foye said he anticipates
continuing running subways, buses and commuter trains.
“The MTA workers are performing heroically given this challenge and are
rising to the occasion of taking first responders and essential workers
to and from their jobs,” Foye said during the radio program. “And we’re
going to continue to do that throughout this entire pandemic.”
--
So many immigrant groups have swept through our town
that Brooklyn, like Atlantis, reaches mythological
proportions in the mind of the world - RI Safir 1998
http://www.mrbrklyn.com
DRM is THEFT - We are the STAKEHOLDERS - RI Safir 2002
http://www.nylxs.com - Leadership Development in Free Software
http://www.brooklyn-living.com
Being so tracked is for FARM ANIMALS and extermination camps,
but incompatible with living as a free human being. -RI Safir 2013
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