(The Center Square) – The Maryland Transportation Authority’s bond outlook has been revised from stable to negative, as S&P Global Ratings warned of growing financial risks tied to reconstructing the Francis Scott Key Bridge and other major projects.
S&P affirmed MDTA’s AA–rating but cited a one-in-three chance of a downgrade if construction costs escalate, federal reimbursements are delayed or toll revenues decline, according to an April 25, 2025, press release from S&P Global Ratings. The authority manages Maryland’s tolled bridges and tunnels and funds its operations through toll collections.
S&P Global Ratings is one of the major credit rating agencies that assesses the financial health of governments, companies and public authorities. Its outlook changes can affect borrowing costs and investor confidence.
The Key Bridge, part of Interstate 695, collapsed in March 2024 after a cargo ship struck one of its supports. Reconstruction is expected to cost between $1.7 billion and $1.9 billion, with completion targeted for 2028.
Although the federal government has pledged to cover the upfront costs, MDTA is responsible for recovering the funds through insurance claims and litigation — a process officials have said could take years.
In its release, S&P said MDTA’s large capital needs, including the bridge rebuild and a $5.1 billion six-year capital improvement plan, could weaken its financial flexibility.
At the end of fiscal year 2023, the authority reported $889 million in unrestricted cash and about $2.8 billion in outstanding toll-backed bonds.
While MDTA has not announced changes to toll rates, S&P warned that rising project costs or softening demand could pressure the agency’s debt service coverage over time.
S&P Global Ratings confirmed to The Center Square that MDTA’s AA–rating remains in place and that only the agency’s outlook was revised to negative.
MDTA Executive Director Bruce Gartner and Communications Director Bradley Tanner did not respond to a request for comment at the time of publication.
