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KBRA Affirms A+ with Stable Outlook for Peninsula Corridor Joint Powers Board (CA) Farebox Revenue Bonds

22 Jan 2026   |   New York

Contacts

KBRA affirms the long-term rating of A+ with a Stable Outlook for the Peninsula Corridor Joint Powers Board (JPB) Farebox Revenue Bonds. JPB operates Caltrain, a single-asset commuter rail system that provides high frequency service from San Francisco to San Jose, with limited service onward to the City of Gilroy. Operated by JPB since 1992, the rail system traverses Silicon Valley and serves a three-county service area with a combined population of 3.5 million.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Gross lien revenue pledge providing strong coverage of Farebox Revenue Bonds despite slow recovery in post-pandemic ridership.
  • Favorable long-term demographic trends and high income level of the population base support long-term ridership growth.

Credit Challenges

  • Outyear budget gaps are large, reflecting gradual ridership recovery and large anticipated operating cost escalations following the substantial completion of the Peninsula Corridor Electrification Project.

Rating Sensitivities

For Upgrade

  • Dedication of a new, recurring funding source that will restore structural balance to operations.

For Downgrade

  • Inability to materially address outyear operating budget gaps.
  • Unfavorable developments in ability to manage near-term liquidity.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013174