TX DOT info on SH130/ Moody’s downgrade of SH130 to junk status and in technical default

Past performance is the best indicator of any future potential. Everyone that is interested in the latest tollway should take note of the issues SH130 is having.

TTC/Publicwerks is presenting their project as a 100% private funded tollway. However there are members of the NCTCOG that want to ensure this tollway is built by entering into a P3 relationship with TTC to encourage private investment. Please contact your representatives and the NCTCOG and state your opposition ( or support ) to entering into any new P3 project with providing any public money or entitlements such as non compete clauses to any private company.

http://www.txdot.gov/business/partnerships/current-cda/sh-130.html

Moody’s Investment Service today declared the southern half of the State Highway 130 toll road to be in ‘technical default,’ saying it rescheduled rather than made a June 30 payment on it’s $1.1 billion debt, Newsradio 1200 WOAI reports.

“By executing a waiver agreement, we understand that the project is not in legal default,” according to a Moody’s investor note. “However, Moody’s view is that the failure to meet the full payment that was originally scheduled for June 30, 2014 constitutes a default under Moody’s definition.”
http://www.texasturf.org/2012-06-01-03-09-30/latest-news/public-private-partnerships/1087-moodys-sh-130-toll-road-in-technical-default

SH 130 is a state-owned toll road being developed under public-private partnership with the SH 130 Concession Company. Under the agreement, the developer is designing, constructing, operating and maintaining the toll road over 50 years. There is a $1.3 billion private investment in this project which is failing to meet its payment obligations. This is yet another P3 project falling short of projected and advertised private funding support being sustainable. 

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