Fitch Ratings downgraded the San Francisco Bay Area Rapid Transit’s rating one notch in mid-August. It said the system is facing risks brought on by “fundamental changes in commuter behavior and transit demand over the next several years.”
Belle Haven’s Lee said that credit rating companies broadly held off on initiating deep downgrades after the onset of the pandemic, waiting to see how it would ripple through their finances, and the series of stimulus measures enacted in Washington prevented widespread defaults. She said the companies now may be more active from here on.
“I think now that we know what the new normal may look like, rating agencies may be more willing to recalibrate their grades,” she said.
This article was provided by Bloomberg News.