Improved public transport credit rating boosted by congestion pricing and ticket prices, MTA states.
The Metropolitan Transportation Authority (MTA) received a credit rating upgrade from S&P Global Ratings on August 12, 2025. The MTA's Transportation Revenue Bonds rating was improved from an A- to an A, with a stable outlook.
This upgrade comes as a result of several key factors that have contributed to the MTA's improved financial stability. One of the primary drivers of this confidence is the successful launch of congestion pricing in Manhattan, which has generated net revenues 8% above budget in its first six months.
Since January 5, 2025, when congestion pricing went into effect, an average of 70,000 fewer vehicles have traveled into the congestion pricing zone each day, representing an 11% reduction. This new reliable revenue stream, along with the ongoing increase in transit ridership, has significantly boosted farebox revenue and toll revenue.
In addition to congestion pricing, the MTA has also focused on measures to reduce fare evasion, strategies to improve fare revenue integrity, and dedicated state and local financial support. The state and local governments have increased subsidies and taxes dedicated to supporting the MTA’s operations and capital plans, including a Payroll Mobility Tax projected to bring $1.4 billion in recurring annual revenues through 2029.
The MTA has also maintained balanced operating budgets through 2026, supported by baseline increases across farebox revenue, tolls, dedicated taxes, and governmental subsidies. The agency is also proactively managing its debt, paying off future debt obligations to strengthen its credit profile.
The improved credit rating is a testament to the MTA's continued growth in financial stability. Jai Patel, MTA chief financial officer, stated that the upgrade demonstrates this growth, saying, "The upgrade shows continued growth in confidence in the MTA's financial stability."
In the coming months, the MTA plans to focus on operating budget savings and delivering reliable service to further support its financial profile. A fare hike from $2.90 to $3 per ride is planned for bus and subway riders in January. The funds generated from this fare increase, along with the revenue from congestion pricing, will be used to fund key transit projects, including accessibility improvements at stations, modern signal systems, electric buses, and structural repairs and power system improvements.
The MTA's budget allows it to "maintain a sufficiently strong financial profile," according to a press release. The agency has also made significant strides in reducing crime at gate-guarded stations, with a 36% drop in crime since the deployment of gate guards.
Despite these successes, fare evasion remains a problem for the MTA. However, the agency is committed to addressing this issue and continuing to improve its financial stability for the benefit of its commuters and the city as a whole.
[1] S&P Global Ratings, "MTA's Transportation Revenue Bonds Rating Upgraded to A on Aug. 12, 2025," [link to press release] [2] New York City Department of Transportation, "Congestion Pricing Program," [link to congestion pricing program page]
