Billions in PA Turnpike bonds downgraded by Moody's

Written by The Associated Press | Apr 11, 2013 3:21 PM

(Harrisburg) -- A credit rating agency is downgrading the ratings on about $3.1 billion in Pennsylvania Turnpike Commission bonds.high

Moody's Investors Service says it downgraded the bonds' rating from A1 from Aa3.

It says the move reflects the turnpike commission's need for higher-than-expected annual toll increases and more borrowing because of traffic and revenue growth that is lagging a consultant's forecasts.

A lower rating could mean higher borrowing costs.

Turnpike chief executive Mark Compton says the decision wasn't a surprise and is similar to other ratings agencies' actions. Compton says the agency's total debt load is now $7.5 billion.

Pennsylvania Auditor General Eugene DePasquale says the downgrade supports changing a 2007 law and passing a comprehensive transportation funding bill.

Published in News

Tagged under , , , , ,

back to top

Give Now

Estate Planning

Support for WITF is provided by:

Become a WITF sponsor today »

Smart Talk

National Edward R. Murrow Awards

DuPont Columbia Awards

Support Local Journalism

Latest News from NPR

Support for WITF is provided by:

Become a WITF sponsor today »