Fitch Ratings warned it may have to lower ratings on Garvee bonds if Congress only approves more short-term extensions of a surface transportation bill through 2012 instead of a multi-year bill. The current extension gives legislators until March 31 to close a gaping hole between House and Senate proposals.

“Continued short-term extensions through 2012 without any progress on a longer-term program could lead Fitch to lower its opinion of the strength of the federal program and downgrade the ratings on grant anticipation revenue vehicle bonds lacking a state back-up pledge,” the rating agency said Thursday.

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