Printer Friendly

NEW JERSEY TURNPIKE $775 MILLION REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW JERSEY TURNPIKE $775 MILLION REVENUE BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Jan. 6 /PRNewswire/ -- The New Jersey Turnpike Authority's $775 million Turnpike Revenue Bonds, Series 1992 A, are rated "A" by Fitch. The "A" rating is affirmed on the authority's $2.1 billion aggregate outstanding parity bonds: Series 1991 A, Series 1991 B, Series 1991C, and Series 1991 D. The credit trend is stable.
 The foundation for the rating is the New Jersey Turnpike's critical location as both a link in the major Northeast transportation corridor and a primary roadway in the greater New York metropolitan area.
 Although traffic growth has slowed recently due to the national and regional recessions, the turnpike's strong operating history has continually demonstrated its inherent resiliency in such cyclical dislocations. The 1991 financing plan is well conceived and successfully serves the two politically divergent goals of lending financial support to state government while preserving the authority's financial viability to maintain and improve its investment in the turnpike.
 The New Jersey Turnpike Authority has responded to the state legislature's mandate to buy a 4.4 mile segment of I-95 from the state with considerable reevaluation and revision to its day-to-day operations and to its capital planning process. In addition to its critical location, there are few alternative limited access options to the turnpike. These factors have resulted in a highly inelastic traffic demand which, in turn, has produced consistently strong historical operations. Despite the recent large toll increase, the current rates are competitive with other comparable turnpikes and sufficient leeway remains to raise them further when needed. Legal provisions in the new 1991 resolution provide a solid financial framework for bondholder protection as well as for the turnpike's ongoing maintenance and operations.
 Counterbalancing these solid credit fundamentals are the authority's currently high debt burden and significant projected additional capital needs. Furthermore, the authority's recent track record of capital planning has been inadequate and costly with continual revisions necessary. Similarly, the authority's expense control history has been insufficient as well. The governor's ability to veto toll increases further complicates timely implementation of such increases.
 -0- 1/6/92
 /CONTACT: Andrea R. Bozzo of Fitch, 212-908-0515/ CO: New Jersey Turnpike Authority ST: New Jersey IN: SU: RTG


TS -- NY033 -- 6866 01/06/92 11:28 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 6, 1992
Words:383
Previous Article:CRIME COMMISSION CITED AS PRIME EXAMPLE OF GOVERNMENT WASTE
Next Article:SILICON GRAPHICS AGAIN TOPS INDUSTRY IN WORKSTATION CUSTOMER SATISFACTION


Related Articles
NEW JERSEY TURNPIKE $1.6 BILLION REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
CAMDEN COUNTY, N.J. POLLUTION CONTROL FINANCING AUTHORITY BONDS RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
NEW JERSEY $450 MILLION GENERAL OBLIGATION BONDS 'AAA', NOTES 'F-1+/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
UNION COUNTY UTILITIES AUTHORITY, N.J. SOLID WASTE REVENUE BONDS 'A' BY FITCH -- FITCH FINANCIAL WIRE --
PORT AUTHORITY OF NY AND NJ $100 MILLION BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSTON BRIDGE $90 MILLION SENIOR LIEN BONDS RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --
PORT AUTHORITY OF N.Y. AND N.J. $219 MILLION BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
NEW HAMPSHIRE TURNPIKE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSTON SHIP CHANNEL BRIDGE SENIOR BOND RATING WITHDRAWN BY FITCH -- FITCH FINANCIAL WIRE --
Fitch Upgrades $81M Maine Turnpike Authority Revs To 'A+' - Fitch Financial Wire -

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters