Moody's Investors Service upgraded the Chicago Transit Authority's (CTA) sales tax bonds to Aa3 and the Regional Transportation Authority's (RTA) bonds to Aa2. The agency revised the outlook for both entities to stable.
This decision follows Illinois Governor JB Pritzker's signing of the Northern Illinois Transit Authority Act. The legislation is expected to enhance the financial and operational stability of the region’s transit services.
The upgrades are based on expectations of strong sales tax performance and improved budgetary stability. The new law authorizes the RTA to increase its sales tax, directly boosting revenue available to cover outstanding bonds. Moody's expects debt service coverage by regional sales taxes to remain robust.