Post Content

Transportation reform legislation signed by Governor Deval Patrick is making an immediate, positive difference in saving transportation costs while improving the Turnpike Authority credit rating.

Transportation Secretary James Aloisi and Turnpike Executive Director Jeff Mullan worked with Governor Patrick's Executive Office of Administration and Finance in using the tools provided by the Governor and legislature in the transportation reform law.  The result is the announcement of increased credit rating for Turnpike bonds, avoiding a $186 million payment to UBS on interest rate swap agreements.  Read the Executive Office of Administration and Finance statement below summarizing this important step forward.

        
         Governor Deval Patrick announced today the Commonwealth will save nearly $200 million this week in transportation-related costs as a direct result of sweeping transportation reform he signed into law less than one month ago.
       
         The Patrick-Murray Administration was notified today that the rating agency Moody's has increased the credit rating of the Turnpike Authority's MHS subordinate bonds multiple levels to A1 stable. As a result, UBS will not have the right to terminate four interest rate swap agreements with the Turnpike, and the Turnpike will not be required to make a $186 million payment to UBS. The Administration expects to hear from rating agency Fitch this evening.
       
         The rating upgrade is a result of the sweeping transportation reform legislation recently signed by the Governor, including the Commonwealth's commitment to provide $100 million each year to the Turnpike Authority. The Governor also worked closely with the Legislature over the last few weeks to enact additional legislation to increase the credit of the Turnpike's bonds. Transportation reform and this resulting rating upgrade not only relieves tollpayers from having to make a $186 million payment to UBS, they will also save tollpayers millions of dollars in operating costs and financing costs in the years to come.
       
         A fifth swap agreement with UBS, presently valued at $65 million, is not cured by the Moody's upgrade. The Administration is awaiting rating action by Standard and Poors, expected tomorrow, which could potentially cure the fifth swap. At the same time, the Administration continues to negotiate with UBS about the terms of a potential Commonwealth guaranty, which the Legislature authorized last week and the Governor signed Monday.
      

Written By:

Recent Posts

Massachusetts Community Transportation Conference Set posted on May 4

Massachusetts Community Transportation Conference Set

MassDOT’s Rail & Transit Division in partnership with MassMobility is hosting the annual Massachusetts Community Transportation Coordination Conference on Tuesday, May 5 in Marlborough. MassDOT Secretary and CEO Stephanie Pollack will deliver the keynote address outlining MassDOT’s vision for coordinated transportation. The annual statewide coordination   …Continue Reading Massachusetts Community Transportation Conference Set

South Coast Rail Partnership Celebrated posted on May 4

South Coast Rail Partnership Celebrated

The South Coast Rail project is well into its first year of permitting and design. Surveyors are measuring the rights-of-way, geotechnical field work is underway, and designers are considering bridges, crossings and signals. Reestablishing transit connections between the South Coast and Boston is more than   …Continue Reading South Coast Rail Partnership Celebrated

Safe Routes to School Celebrates Greenfield Walking School Bus Kickoff posted on Apr 30

Safe Routes to School Celebrates Greenfield Walking School Bus Kickoff

The Massachusetts Safe Routes to School Program (SRTS) and Greenfield Public Schools announced a city-wide kickoff of a walking school bus program at three Greenfield elementary schools at an event this week. The City of Greenfield has been a Massachusetts Safe Routes to School partner   …Continue Reading Safe Routes to School Celebrates Greenfield Walking School Bus Kickoff