Separate toll lanes on non-tolled highways carry greater credit risks than traditional toll roads because they are challenging to implement and subject to extreme traffic volatility, Moody’s Investors Service concluded in a new report.

Public planners are making increasing use of these separate toll lanes, called “managed lanes,” because they offer the opportunity to relieve traffic congestion and create revenue without creating an entirely new road. Managed lanes have begun to pop up in Northern Virginia, Texas, and California, among other places. They can be either new lanes constructed in a widening of the freeway or tolled lanes converted from high-occupancy or carpool lanes.

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