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Fitch Ratings has downgraded Dallas Area Rapid Transit’s (DART) senior lien sales tax revenue bonds from AA to AA-, the rating agency said in a prepared statement.

“The downgrade to AA- for the senior and senior subordinate bonds reflects the increased financial stress experienced by DART due to a sharp downturn in sales tax receipts and rising spending requirements from system expansion,” Fitch officials said.

DART management is in the process of implementing “a prudent cost reduction plan; however, restoration of fiscal balance relies on optimistic projections of sales tax growth of 5 percent to 6 percent annually over the next five years,” Fitch said.

The rating change also takes into consideration DART’s dependence on a “historically volatile” sales tax base for the majority of its resources and its limited ability to raise revenue “given the low level of farebox receipts relative to operations,” Fitch said.

DART’s rapidly growing debt load resulted from $2.8 billion in new money bonds issued since 2007.

“Completion or near completion of three large rail extension projects over the next two to three years is expected to reduce [DART’s] future borrowing needs,” Fitch said.