First S&P, now Moody’s downgrades Thruway rating
by Rick Karlin, Capitol bureau
First it was Standard & Poors and now Moody’s has followed suit, downgrading the Thruway Authority’s bond rating. They dropped the ranking for senior lien revenue bonds from A1 to A2.
This is for bonds that have already been sold, according to a company spokesperson.
Moody’s cites similar reasons as S&P: cost of the new Tappan Zee Bridge, uncertainty about how it will be paid for and if tolls will be adequately raised to pay for the project.
There are also a couple of interesting observations. They, for example, give politics its due when it comes to tolls, saying “All members of the board are appointed by the governor, which could lead to some political interference with respect to implementing toll increases, though member terms are nine years and staggered.”
And they note other perhaps, less-known risks including the use of a new type of crane that has to come from the west coast, and the fact that the design isn’t totally completed.
Read more at http://blog.timesunion.com/capitol/archives/199035/first-sp-now-moodys-downgrades-thruway-rating/