Fitch upgrades RTD’s Issuer Default Rating to ‘AA+’
DENVER (Feb. 7, 2025) –– The Regional Transportation District (RTD) received an upgraded rating outlook of ‘AA+’ from Fitch Ratings, one of three credit rating agencies RTD uses, including Standard & Poor’s and Moody’s. Previously, the agency’s score was ‘AA’.
A news release issued by Fitch shared that the upgraded Issuer Default Rating of ‘AA+’ Outlook Stable for RTD indicates the agency’s financial resilience assessment “based on limited budgetary flexibility and Fitch’s expectation that net working capital levels will equal at least 25% of total net operating expenses compared to the current level of nearly 97%.”
“RTD is pleased with the credit rating upgrade from Fitch following the credit rating upgrade from S&P,” said RTD Chief Financial Officer Doug MacLeod. “The credit rating upgrades demonstrate RTD’s commitment to providing Community Value and Financial Success as part of its Strategic Plan and exhibits RTD’s responsibility of being a good steward of taxpayer dollars.”
RTD also received upgraded scores for the following:
- Approximately $2.0 billion sales tax revenue bonds (FasTracks Project) to 'AA+' from 'AA'
- Approximately $331 million certificates of participation (COPs) to 'AA' from 'AA-'
- Eagle Project Public Private Partnership (PPP) counterparty rating to 'AA-' from 'A+'
The credit upgrade comes in advance of RTD’s Board of Directors considering refinancing some existing certificates of participation this month. The upgraded rating could help the agency obtain lower interest rates than it would otherwise have had should the agency determine to move forward with refinancing.
More information about RTD’s financials and investor information – including budget documents, bond issuances and disclosure statements – is available on the agency’s website.