$3.1B In Pa. Turnpike Bonds Downgraded By Moody’s
HARRISBURG, Pa. (AP) – A credit rating agency is downgrading the ratings on about $3.1 billion in Pennsylvania Turnpike Commission bonds.
Moody’s Investors Service said Wednesday that 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.