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Article: Transportation: Moody's: Gas Prices May Lead to Toll Increases.(Washington)
- Article from:
- The Bond Buyer
- Article date:
- August 7, 2008
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Audrey Dutton
WASHINGTON - Gasoline prices at $4.00 or more per gallon for a prolonged period could depress toll road traffic and revenue, and compel governments to increase tolls to prevent credit rating downgrades, Moody's Investors Service warned in a report issued today.
Despite the warning, Moody's gave the government-owned toll road sector a cautiously stable outlook for the next year to 18 months, pointing to steady traffic in commuter-heavy metropolitan areas as a stabilizing factor. However, greater leveraging of toll road assets could put downward pressure on the sector's A1 median rating.
"We expect continued steady debt ...