ST. LOUIS – Good news for Bi-State Development Agency (BSD): Moody’s Investors Service announced earlier this month that it has upgraded the agency’s bond credit ratings.
In a report issued on May 12, Moody’s raised the ratings for BSD’s combined outstanding lien sales tax bonds, totaling $299.1 million, from a rating of Aa3 to Aa2, while also bumping up the outstanding senior lien sales tax bonds, the amount of which comes in at $97.2 million, from A1 to Aa3.
Moody’s cited several factors for the upgrades, including stability in pledged revenues, a sizable and diverse tax base, and increased coverage of maximum annual debt service.
The newly upgraded ratings are some of the highest grades given out by Moody’s, which BSD says indicates that the bonds are judged to be of high quality and subject to very low credit risk.
“Financial markets are recognizing our fiscal responsibility, and this announcement tells the world that Bi-State Development is a sound investment,” John Nations, Bi-State Development President and Chief Executive Officer, said. “This is not only good news for us, this is good economic news for the region. These upgraded credit ratings give us a stronger position in the marketplace, allowing us to pursue better investment and development opportunities in the bi-state area.”
BSD owns and operates St. Louis Downtown Airport and the Gateway Arch Riverboats, and also operates the Gateway Arch Revenue Collections Center and Gateway Arch trams.
BSD is also the operator of the Metro public transportation system for the St. Louis region, which includes the 87 vehicle, 46-mile MetroLink light rail system; a MetroBus vehicle fleet of approximately 400 vehicles operating on 79 MetroBus routes; and Metro Call-A-Ride, a paratransit fleet of 120 vans. BSD also operates the Bi-State Development Research Institute and the St. Louis Regional Freightway, the region’s freight district.
To view Moody’s report, click here.
