The credit rating agency Moody’s has downgraded Transport for London’s debt, saying that the transport network’s finances have “been durably and materially weakened by the pandemic”.
London’s financial paper City AM reports the agency said that the government’s unwillingness to provide “clarity” on the operator’s long-term finances meant that “this erosion in its financial strength is unlikely to be reversed”.
Its unsecured debt has been downgraded from A1 to A3, meaning analysts are worried about future prospects for the security, thinking they are weaker than they were.
A TfL spokesperson told City AM, “Moody’s decision reflects a number of factors, including the impact of the coronavirus pandemic, their assessment of the financial support provided by Government and the current absence of a longer-term funding agreement.
“We continue to rebuild revenue with nearly 60 per cent of pre-pandemic ridership already travelling again.
We will work hard to protect front line services and look forward to reaching a longer-term settlement with Government so that we can plan effectively for London’s future, make progress on decarbonisation, improve air quality and promote active travel.”
(Picture – Highways News)