Bangkok--22 Aug--Standard & Poor's
There are three potential main risks to the credit quality of bonds backed, in whole or in part, by direct federal payments for state and local highway and transit programs (GARVEE bonds) that, if realized alone or in combination, could lead to a reevaluation of the ratings on some or all these bonds, Standard & Poor's Ratings Services said in a report released today.
"Diminished funding, a delay in extending the gasoline tax, or delaying continuation of vital surface road programs could all have an impact on our ratings on GARVEE bonds," Standard & Poor's analyst Joseph Pezzimenti said in the report, entitled, "Risks At The Federal Level Could Affect Ratings On GARVEE Bonds."
The ratings were not directly affected by our recent downgrade of the U.S. (see "United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative," published Aug. 5, 2011, on RatingsDirect on the Global Credit Portal). Pursuant to our criteria, we assume the government will take timely action to support these programs and their related bonds.
The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Olayinka Fadahunsi, 1(212) 438-5095,
[email protected]
Analyst Contacts:
Joseph J Pezzimenti, New York (1) 212-438-2038
Todd R Spence, Dallas (1) 214-871-1424
Geoffrey Buswick, Boston (1) 617-530-8311
Adam Torres, New York (1) 212-438-2481