Respected global bond rating agency finds TriMet in good position to repay bonds
Kroll Bond Rating Agency recently affirmed its highest rating for TriMet’s payroll tax revenue bonds.
KBRA gives these bonds an AAA rating. Its outlook for the bonds is stable, showing confidence that TriMet will continue to meet the highest standards for our ability to repay these bonds.
The AAA rating means TriMet’s payroll tax bonds are the highest possible quality investment and the lowest credit risk, while the stable outlook affirms that they are expected to remain that way.
KBRA previously gave its AAA rating to TriMet’s payroll tax bonds in 2024. Other bond rating agencies agree: Moody’s awarded the bonds its top rating of Aaa with a stable outlook earlier this year, and Standard & Poor’s has also consistently given these bonds an AAA rating.
Bond rating agencies apply tests to determine how likely it is that a public agency will be able to repay its bonds — all of which TriMet has passed, as the AAA rating shows. Additionally, KBRA describes the payroll tax that supports TriMet operations as “an exceptionally reliable revenue source.”
TriMet relies on payroll taxes to provide high-quality transit service throughout our 533-square-mile, tri-county service area. We sell bonds to borrow against the payroll tax revenue we expect to take in. These bonds help pay for infrastructure improvements and capital projects.
Thanks to the top-notch bond ratings we’ve received for our payroll tax bonds, we pay less in interest on those bonds. That helps to bring down the cost of improvement projects that allow TriMet to better serve our riders.
As part of our strategic planning effort, TriMet is making deliberate service and budget reductions to ensure payroll tax resources will be available to pay our debt obligations for many years to come.