Research Summary

Rating Action: Moody's assigns A2 rating to Metropolitan Transportation

Authority's Transportation Revenue Bonds: $500M Series 2013C and $350M

Series 2013D; outlook is stable

Global Credit Research - 22 May 2013

Approximately $17.4 billion outstanding transportation revenue bonds (before current offering and

excluding CP)

New York, May 22, 2013 -Moody's Rating

Issue: Transportation Revenue Bonds, Series 2013C; Rating: A2; Sale Amount: $500,000,000; Expected Sale

Date: 05-28-2013; Rating Description: Revenue: Government Enterprise

Issue: Transportation Revenue Bonds, Series 2013D; Rating: A2; Sale Amount: $350,000,000; Expected Sale

Date: 06-17-2013; Rating Description: Revenue: Government Enterprise

Opinion

Moody's Investors Service has assigned A2 ratings to the $500 million New York Metropolitan Transportation

Authority's (MTA) Transportation Revenue Bonds Series 2013C and $350 million Transportation Revenue Bonds

Series 2013D. The outlook is stable. The Series 2013C bonds will be sold the week of May 27 and proceeds will

be used to finance transit and commuter projects. The Series 2013D bonds will be sold the week of June 17 and

proceeds will be used to redeem $350 million of outstanding commercial paper notes (CP-2, Subseries C) in light

of the expiration on June 30 of the supporting LOC from RBC Capital Markets.

SUMMARY RATING RATIONALE

The A2 long term rating incorporates the diversified revenue base that supports the transportation revenue bonds

(TRBs); sound overall financial management with adequate flexibility to manage a complex portfolio of variable rate

debt and swaps; and strong demand for the essential services the MTA provides to New York City and the seven

surrounding New York metropolitan counties.

The MTA faces a challenging environment as it manages its operations and a substantial capital plan in the midst

of an economy still in recovery, labor negotiations, and a challenge to a significant revenue source, the payroll...