PHILADELPHIA (KYW Newsradio) — SEPTA's financial picture looks a little better in the eyes of a major credit rating agency (for now).
SEPTA now has a stable outlook from Moody's Ratings, up from last year’s negative. The upgrade happened even though SEPTA's funding situation this year hasn't changed.
Without predictable state subsidies, SEPTA last year threatened deep service cuts until PennDOT allowed SEPTA to use state capital funds for operating expenses.
Last week, Moody’s cited "better than expected" financial performance based on the transit agency finding $30 million in savings plus increased revenue from parking, advertising and investments. That reduced its structural deficit from $213 to $192 million.
SEPTA Board Chair Ken Lawrence said the upgrade "demonstrates to investors, policymakers, and other stakeholders that SEPTA is making measurable progress."
Moody's did point out, though, that in the long term, SEPTA's budget gap will be difficult to resolve without more state money or what it calls "significant" adjustments to operations.
