MOODY'S RAISES RATING ON PENNSYLVANIA TURNPIKE COMMISSION'S TURNPIKE REVENUE BONDS TO 'A1'
MOODY'S RAISES RATING ON PENNSYLVANIA TURNPIKE COMMISSION'S TURNPIKE REVENUE BONDS TO 'A1' NEW YORK, Aug. 12 /PRNewswire/ -- Effective yesterday, Moody's Investors Service has revised the rating on the Pennsylvania Turnpike Commission's turnpike revenue bonds from "A" to "A1" in conjunction with the sale of $564,205,000 in bonds expected through negotiation this week. In revising the rating, Moody's noted that this well seasoned and critical roadway has a long record of public acceptance and utilization and a demonstrated history of strong financial performance. The relatively large number of work-related and non-discretionary trips serves to insulate it to a great extent from adverse economic conditions. The major capital expansion components financed several years ago from the large debt issues are now coming into service, and a series of recent refundings for savings has and will significantly reduce annual debt service. Additionally, future borrowing plans appear modest. Debt coverage by historical net revenues is ample, and recently improved a sizable 30 percent toll increase in 1991. Unlike many other financially successful vehicular toll facilities whose revenues have been subject to diversion for non-roadway or state-related purposes, the Pennsylvania Turnpike benefits from its closed-loop flow of funds. The combination of these positive credit factors support the increase in the turnpike's rating from "A" to "A1." -0- 8/12/92 /CONTACT: Craig Atwater, 212-553-0327, or Michael Johnston, 212-553-7810, of Moody's Public Finance Department/ CO: Pennsylvania Turnpike Commission ST: Pennsylvania IN: TRN SU: RTG
SM-KW -- NY050 -- 6190 08/12/92 12:42 EDT
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|Date:||Aug 12, 1992|
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