Press Release  MassDOT Announces Upgrade in Senior Revenue Bonds from A+ to AA- 

BOSTON — The Massachusetts Department of Transportation (MassDOT) is pleased to announce that internationally recognized bond credit rating company, Standard & Poor’s (S & P), has upgraded the Metropolitan Highway System’s (MHS) Senior Revenue Bonds, moving the rating up, from A+ to AA-. The total value of the bonds that were upgraded is $408.5 million.

In announcing the improved rating, S & P praised MassDOT’s strong governance and management, noting that its experienced team has  demonstrated a “history of maintaining financial controls, monitoring ongoing and significant capital investment requirements, and evaluating and mitigating material risks.”  

“The Healey-Driscoll Administration is committed to ensuring that every state agency takes a fiscally responsible and prudent approach to safeguard and maximize taxpayer dollars,” said Transportation Secretary and CEO Monica Tibbits-Nutt. “We’re proud that the financial discipline and hard work of the MassDOT team have led to this bond upgrade from S & P.  The improved rating is a meaningful recognition of our stewardship of the Metropolitan Highway System — and it underscores our deep commitment to sound, transparent financial management.”  

MassDOT Chief Financial Officer David Pottier added, “We are pleased S & P believes in our ability to sustain the current liquidity profile while we continue to make major investments in the infrastructure for the Metropolitan Highway System assets. We are grateful for the review that was conducted and will continue to strive to improve financial performance, focusing on processes which lead to good governance.” 

In announcing the upgrade, S & P stated, in part, that the upgrade reflects the firm’s expectation that financial metrics will be maintained at levels consistent with an overall strong financial risk profile. 

The Metropolitan Highway System is the area of I-90, (the Massachusetts Turnpike), east of Route 128/I-95, (the Boston Extension), and includes:   the three tunnels, (Sumner, Callahan and Ted Williams), and,  the Tobin Bridge, as well as the existing Central Artery North Area (CANA) and the Central Artery. 

The MHS transportation network consists of almost 250 lane miles of roadway, of which, approximately two thirds are tolled. Tolled facilities include the Ted Williams Tunnel, Sumner/Callahan Tunnel System, and the Boston Extension. 

The MHS network also includes 227 bridges and viaducts and seven major tunnel structures, (three under Boston Harbor: Ted Williams, Sumner and Callahan; I-93 northbound and southbound tunnels, I-90 connector tunnel under Fort Point Channel and through South Boston, CANA tunnel beneath City Square through Charlestown). 

The bond rating upgrade by S & P is an important and noteworthy development, as it reflects a positive evaluation and signifies that the agency views MassDOT’s financial position as strong and stable. The upgrade highlights that MassDOT holds a high-quality investment-grade product, which can enhance investor confidence and attract additional interest in these bonds. Standard & Poor’s is a highly respected financial services company known for its credit ratings, indices, and analytics.

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