Fitch Ratings has assigned a ‘AA-‘ rating to Port Authority of New York and New Jersey’s (PANYNJ) proposed $300 million Consolidated Revenue Bonds, 251st Series. The Rating Outlook is Positive.

Fitch has affirmed the following outstanding senior-lien parity obligations at ‘AA-‘:
–Parity consolidated bonds;
–New York Liberty Development Corp.’s (NY-LDC) Liberty Revenue Refunding Bonds, Series 1WTC-2021.

Fitch has also affirmed the following subordinate obligations at ‘A’:
–4 World Trade Center (4WTC) Project Bonds, Series 2021 issued by NY-LDC;
–Payment obligations for 4WTC/Goethals Bridge projects.

The Rating Outlook on all outstanding obligations is revised to Positive from Stable.

The Positive Outlook reflects clarity on PANYNJ’s new 10-year capital improvement plan (CIP) and plan of finance leading to rating case senior and total year-five leverage below 7x and 8x, respectively. Favorable CIP progression with visibility on remaining debt plans that sustain current rating case metrics would likely lead to a rating upgrade on both liens.

KEY RATING DRIVERS
Revenue Risk – Volume – High Stronger
Resilient Revenue Base: The region’s diverse and populous economy, as well as its status as a global commerce center, supports resilient demand and pricing power. PANYNJ benefits from a portfolio of monopolistic, expansive and diverse transportation and real estate assets including the four metro New York airports, interstate road, rail and ferry Hudson River crossings, and seaport terminals. Economic pricing flexibility may fall if World Trade Center or Port Authority Trans-Hudson transit assets underperform or if PANYNJ takes on additional loss-making assets.

Revenue Risk – Price – Stronger
Proven Rate-Setting Flexibility: PANYNJ has significant controls over most areas of tolls, fees and other end-user charges across the system of operations. The authority benefits from strong airport cost recovery in airline use agreements and proactive toll increases on its bridges and tunnels with minimal impact on traffic levels. Adjustments to user rates and tolls over time could be influential to regional economic activity, and therefore PANYNJ is somewhat limited than its apparent economic flexibility suggests. Still, the authority benefits from numerous commercial agreements that provide for strong cash flows, and certain key tolls and fares are automatically adjusted to inflationary indices.

Infrastructure Dev. & Renewal – Midrange
Extensive and Growing Capital Needs: PANYNJ’s capital plan through 2035 totals approximately $45 billion to support key airport and rail projects as well as bridge and tunnel works and a replacement bus terminal. This plan is larger than the prior 10-year $37 billion plan. Projects primarily focus on rehabilitating or reimagining existing assets and accommodations for future growth, with some projects having limited financial recovery. Mitigating factors for the plan size include the port’s proven history of finding collaborative funding models, support from key city/state government stakeholders, and a well-balanced funding mix for the port’s own contributions of debt, pay-as-you-go capital and grant funding. The CIP will be reassessed by the board at least every four years to ensure sufficient resources.

Debt Structure – 1 – Stronger; Debt Structure – 2 – Midrange
Conservative Capital Structure: The senior lien consolidated bonds benefit from their nearly 100% fixed-rate, fully amortizing capital structure with a robust covenant package and strong dedicated liquidity. The consolidated bonds further are also secured by the general reserve fund, which is required to be maintained at 10% of the par value of all outstanding bonds. Because PANYNJ’s Goethals Bridge and 4WTC payment obligations are subordinated to the consolidated bonds, Fitch assigns them a lower assessment. Limited covenants and the absence of pledged reserves for the subordinated obligations drive the two-notch rating differential.
Financial Profile

PANYNJ’s financial results continue to perform well, with strong revenue generation from the diverse transportation divisions as well as the real estate assets at the World Trade Center complex in lower Manhattan. Airports, bridges and tunnels collectively contribute 86% of total gross operating revenue as of September 2025. Both divisions generate strong revenue through cost recovery fees or toll rates, which are not as highly price-elastic because rates are adjusted annually. Although senior coverage levels around 2x and year-five leverage below 7x are consistent with a ‘AA’ rating, the rating is currently constrained by limited visibility into post-2030 leverage, given plans for significant debt issuance.

PEER GROUP
PANYNJ’s most comparable peers include Port of Seattle (AA/AA-/Stable) and Massachusetts Port Authority (Massport; AA/Stable), both of which are reliant on airport and port revenue streams. Port of Seattle’s senior-lien metrics are stronger than PANYNJ’s (DSCR above 10x and negative leverage) while Massport’s leverage declines to below 4x over the medium term, reflected in their one-notch higher rating. PANYNJ’s diverse and high-profile asset base is a significant strength; however, the authority still faces longer-term risks around its capital plan, with certain high-profile projects not yet complete, which could lead to greater cost increases and pressure on financial metrics than its peers.

RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

-Activity reductions and revenue losses across the authority’s transportation assets;
-Revenue underperformance that leads to senior leverage or net total leverage (per Fitch’s rating case) remaining above 9x and 13x, respectively.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
-Fitch’s rating case senior leverage sustained below 7x, including additional debt associated with the new long-term capital plan;
-An upgrade of the senior lien to ‘AA’, together with Fitch’s rating case total leverage sustained below 11x (including additional debt for the new long-term capital plan), would likely result in an upgrade of the subordinate lien. This compares with current five-year rating case leverage of 6.6x (senior) and 7.9x (total).

TRANSACTION SUMMARY
PANYNJ planns to issue approximately $300 million of consolidated bonds, Series 251st. Proceeds will be allocated to the refunding of the Port Authority’s Consolidated Bonds, to capital projects and/or for refunding other obligations of the Port Authority.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Climate Vulnerability Signals
The results of our Climate.VS screener did not indicate an elevated risk for Port Authority of New York and New Jersey (NY) [Consolidated Transportation].

ESG Considerations
The highest level of ESG credit relevance is a score of ‘3’, unless otherwise disclosed in this section. A score of ‘3’ means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch’s ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision.
Source: Fitch Ratings