New York's MTA has no need for clean-up borrowing: CFO

Thu Nov 1, 2012 4:39pm EDT

Related Topics

(Reuters) - New York's Metropolitan Transportation Authority does not expect to need to borrow to pay for cleanup and repairs arising from superstorm Sandy, the chief financial officer of the largest U.S. transport agency said on Thursday.

"At this stage, I am not anticipating the need of external borrowing," CFO Robert Foran said in a conference call with reporters. "We fully expect the operating and capital costs will be fully reimbursed by FEMA and our insurance."

The MTA, which operates New York City's subway and buses as well as commuter trains serving the suburbs and various bridges and tunnels, was still calculating the costs from this week's flooding and fierce winds. It would still proceed next week with four, long-scheduled bond deals worth $870 million, according to Pat McCoy, director of finance.

The Federal Emergency Management Agency on Thursday said the federal government will cover 100 percent of emergency power and public transportation costs through November 9 for areas hard hit by the storm. U.S. senators from New York and New Jersey were pushing for full federal reimbursements for all repair and recovery costs related to the storm

Another issue by MTA, for $259 million of floating-rate notes initially scheduled for this week, will be priced next week.

"We are anticipating good investor interest next week," McCoy said.

In addition, McCoy said, the MTA would have "no problem" in meeting bond payments due on November 1 and November 15 on some of its nearly $32 billion of outstanding bonds.

Foran said he expected no changes because of Sandy in the MTA's capital improvements projects, which are expected to cost $24 billion over five years ending in 2014.

(Reporting by Michael Connor in Miami; Editing by Jackie Frank and Leslie Adler)

FILED UNDER: