State, regional, and local transportation toll authorities will steadily issue debt as the economy recovers in order to pay for infrastructure maintenance and construction projects that cannot be funded from state and federal coffers, Moody’s Investors Service predicted in a report issued late last week.

The debt may include Build America Bonds, which Moody’s said will sell at a growing pace before the 35% interest subsidy attached to the taxable BABs expires on Jan. 1, 2011.

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