Infrastructure

Fitch Ratings yesterday placed the Massachusetts Turnpike Authority's $2.24 billion of Metropolitan Highway System debt on credit watch negative due to rising operating costs and an anticipated drop in debt service coverage.

CHICAGO - Chicago will remarket about $300 million of variable-rate third-lien general airport revenue bonds today, shedding the downgraded insurance from the 2005 floating-rate deal that had prompted investors to drop the bonds.

Facing a budget deficit, the Chicago Transit Authority this week announced it would cut 80 administrative jobs, defer non-critical spending on bus maintenance, and undertake other cost-cutting measures to save $40 million.

DALLAS - Shreveport, La., will further reduce its exposure to variable-rate debt this week with a negotiated sale of $24.7 million of fixed-rate airport revenue bonds to refund variable-rate bonds issued in fall 2007.

Transportation departments in some states are bracing themselves for staggering cuts to construction projects as the federal highway trust fund dries up and the Federal Highway Administration implements a rationing of reimbursements this week. The announcement exacerbated worries about the fund, which officials now expect to see at least a $3.1 billion shortfall by the end of fiscal 2009.

WASHINGTON - In a complete turnaround, the Department of Transportation is urging Congress to immediately pass legislation that would move $8 billion from the general fund into the highway trust fund, which DOT officials said has collected even less federal gas tax revenue than expected and is headed for a zero balance on Oct. 1.

WASHINGTON - The Maryland Transportation Authority plans to issue $425 million of grant anticipation revenue vehicles in a competitive deal Wednesday, marking the second and final tranche of Garvees being used to finance the ongoing construction of the state's Intercounty Connector, a $2.4 billion, 18.8-mile toll-road project.

The New Jersey Turnpike Authority will not be able to certify by Dec. 1 that it can meet the debt service coverage levels necessary to maintain its ratings without the increased revenue from toll hikes proposed last week.

The Maine Municipal Bond Bank later this month will issue nearly $50 million of debt backed by revenue allocated to the state's new TransCap Fund that lawmakers established to help finance transportation infrastructure needs.

The federal government must adopt bond-related policy changes and emergency provisions to keep the airport industry afloat, the American Association of Airport Executives said yesterday in a report by its energy and air service task force.