Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Transit Funding

Fitch Downgrades MTA Debt — Interest Payments May Eat More of Your Fare

More and more of the MTA's budget, which is growing overall, is going to paying for its debt service every year. Image: RPA/ESTA.

Yesterday, we reported on the MTA's ever-mounting debt load. By 2014, a new analysis from the Regional Plan Association found, debt service could be taking up a full 23 percent of the agency's operating budget.

Already, that debt is starting to catch up with transit riders. As first reported by Transportation Nation's Andrea Bernstein, Fitch, one of the three major ratings agencies, has downgraded the MTA's debt. That could mean higher payments for the same amount of debt, and therefore higher fares down the line. Wrote Fitch in a press release:

The downgrade reflects higher than expected near-to-medium term financial pressure stemming from increasing operating costs (projected to moderate in growth in the outer years) and pension obligations and growing annual debt service obligations from expected near-term issuance associated with the capital program. This is exacerbated by the strong likelihood that operating subsides (dedicated tax sources) will not grow as anticipated in the near term leading to wider deficits.

The MTA downplayed the significance of the downgrade in a statement. "While a downgrade is never welcome news," said an MTA spokesperson, "we believe the strength of the credits remains fundamentally secure. We also believe that the impact of the Fitch rating action is largely priced into the market already and that any pricing impact would be minimal."

We'll have more on the story as the financial implications of the downgrade become clear, but one thing is for certain. The markets are taking the MTA's fiscal situation very seriously. It's time for Albany and Governor Cuomo to do the same.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

New Bill Would Block Apps From Deactivating Workers Without Cause

A Brooklyn Council member wants delivery app companies to be more human and less robot.

July 18, 2025

Friday Video: Is Berlin a Great Biking City?

Have recent moves by anti-bike, pro-car legislators ruined the experience in the capital of a unified Germany? Sort of!

July 18, 2025

Eyes on the Street: Meeker Avenue Bike Lane Is a Failure

The Department of Transportation still hasn't finished a critical bike lane under the Brooklyn-Queens Expressway that the agency has been stalling for over four years even after identifying the strip's danger and lack of proper signals.

July 18, 2025

Friday’s Headlines: Cuomo’s Road Rage Edition

Why does Andrew Cuomo drive so recklessly? Plus other news.

July 18, 2025

Fixing Third Ave. Was Once ‘Top of List’ For Eric Adams — But as Mayor He Backed Off

Mayor Adams has delayed a redesign of Brooklyn's Third Avenue despite once saying safety fixes there should be "at the top of our list."

July 17, 2025

Thursday’s Headlines: Jerry Nadler Edition

U.S. Rep. Jerry Nadler faced off with Sean Duffy on Capitol Hill. Plus more news.

July 17, 2025
See all posts