Fitch: Falling Tax Revenues Could Lead to Downgrades of Mass Transit Bonds

Sanchez, Humberto
June 2003
Bond Buyer;6/16/2003, Vol. 344 Issue 31657, p7
Trade Publication
A recent decline in state and local tax revenue could prompt rating downgrades for bonds issued for mass transit projects, according to a report being released today by Fitch Ratings Inc. Most transit agencies finance projects on a pay-as-you-go basis, but those that issue bonds to expand and rejuvenate their systems typically back the debt with a state or local tax, such as a sales tax or a fuel tax.


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