Corporate toll road a bust in Texas

Via the SAEN, Moody’s downgrades toll road credit rating again.

Texas 130 is the first public-private toll road in the state, designed to alleviate traffic on I-35. The Texas Department of Transportation owns the road, but the concession company has a 50-year lease to operate and maintain it.

The company’s credit rating previously had been downgraded in April. At the time, Moody’s said traffic counts were about half of initial projections, forcing the company to tap its financial reserves to make loan payments. That month, the Texas Transportation Commission authorized discounts for truckers who used the road.

“Since then,” Moody’s latest report said, “the additional six months of traffic and revenue show monthly growth but not at rates necessary to generate sufficient revenue to meet operating and debt obligations through the June 30, 2014, debt service payment.”

Toll revenue has missed initial forecasts by 55 percent since Texas 130 opened last October, the Associated Press reported.

TxDOT and the concession company recently installed almost 400 signs along I-35 and some on Loop 410 in San Antonio to direct drivers to Texas 130.

Guess who gets to bail out the corporation if they go bankrupt? That’s right, Texas taxpayers. If only someone had seen this coming.

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One Response

  1. […] that never said boo before the crash in 2008. But they’re likely looking at the fact that very few vehicles are paying tolls on this segment of SH […]

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