The credit ratings agency Moody’s has downgraded Transport for London’s debt, due to the “uncertainty” of its long-term funding.
London’s financial paper City AM reports that Moody’s has announced it’s downgraded TfL’s long-term debt as a result of weaker economic growth and higher inflation delaying the service’s return to higher passenger numbers alongside a lack of clarity over capital funding.
TfL and the Mayor of London have been lobbying central government for a long-term funding settlement since the beginning of the pandemic, when passenger revenues crashed.
City AM says Moody’s warned in its downgrade note that though TfL has “a strong track record of cost savings… we view further efficiencies as challenging especially in a high-inflation environment.”
(Picture – TfL)