The U.S. public transportation sector will continue to face something of a rough ride in 2013, Standard & Poor's Ratings Services said in a report released Tuesday.
"We don't think these issues will undo the credit stability we've seen in the sector; in fact, we expect that stability to continue," said Standard & Poor's credit analyst Peter Murphy in the report, entitled, "The U.S. Public Transportation Sector Can Expect A Bumpy Road And A Bit Of Turbulence In 2013."
"However, factors beyond the sector's control might easily stress the ratings," Murphy added.
The biggest issues facing the industry include: an uncertain future in terms of federal funding; mounting capital requirements, due to the need for expansion and rehabilitation of existing infrastructure; budget strains on both consumers and governments that limit revenue-enhancing flexibility; and a still-slow recovery from the recession that ended in 2009.
