Credit agencies affirm RTD's financial strength with stable outlooks
Credit agencies affirm RTD's financial strength with stable outlooks
The Regional Transportation District (RTD)’s strong credit ratings have been affirmed by the three major credit rating agencies – Moody’s, S&P Global Ratings, and Fitch Ratings. These ratings reflect confidence in RTD’s proactive financial management and recognize the need for its essential role as a transit provider across the Denver metro area.
On Jan. 15, Fitch Ratings reported that RTD maintained its AA+ rating on RTD’s FasTracks revenue bonds and AA on certificates of participation (COPs) with stable outlooks across all categories.
Similarly, on Dec. 17, 2025, Moody’s affirmed that RTD maintained its ratings of Aa2 on FasTracks revenue bonds and A1 on COPs with a stable outlook. On Feb. 24, 2025, S&P Global Ratings affirmed its AA+ rating on RTD COPs with a stable outlook.
The credit rating agencies recognize RTD’s proactive and conservative financial management and policies and RTD’s support from voter-approved sales and use taxes that enable RTD to provide transit services for 3.1 million customers across the 2,345 square-mile district. The sales and use tax also enabled RTD to maintain a healthy financial position during and after the COVID-19 pandemic.
Voters approved a ballot measure in November 2024 for RTD’s sales and use tax to remain exempt from TABOR limits, signifying community recognition of RTD services being essential. RTD provides transit service in a large and economically robust area that represents more than 50% of Colorado's total population, with the service area encompassing an extremely diverse economy.
RTD’s strong credit profile is bolstered by its adequate liquidity position, strong debt service coverage on FasTracks bonds, and direct payment of pledged sales and use tax revenue. The agency defeased certain debt before fiscal 2026, reducing debt service payments by approximately $57 million to provide additional expenditure flexibility.
While RTD is operating at a deficit, a challenge facing transit agencies nationwide, RTD maintains sufficient reserves and is addressing the structural imbalance for long-term financial sustainability. Credit agencies expect RTD’s disciplined approach to financial management will maintain adequate reserves by strengthening revenue and adjusting expenditures to provide sufficient debt service coverage.
Heading into 2026, RTD will continue to focus on maintaining adequate reserves and judiciously managing operating costs while conducting planned and necessary maintenance to protect the long-term integrity of the system. All the while, RTD will continue to provide bus and rail services that support customers and a welcoming transit experience.
Credit ratings are independent assessments of an organization's ability to meet its financial obligations. Higher ratings generally result in lower borrowing costs, thereby reducing taxpayer costs. The stable outlook indicates rating agencies expect RTD to maintain its strong financial position over the next 18-24 months as it executes its plan to address operational challenges.
More information about RTD’s financials and investor information – including budget documents, bond issuances and disclosure statements – is available on RTD’s website at Financial Performance | RTD-Denver.