Light Texas 130 traffic prompts credit review of toll debt
The privately operated section of the Texas 130 tollway south of Mustang Ridge is attracting about half the predicted traffic, according to Moody’s Investor Service, prompting it to investigate downgrading credit ratings for more than $1.1 billion in debt attached to the toll road.
Meanwhile, toll rates for trucks on the entire length of the tollway, from Seguin to north of Georgetown, will likely be lowered for one year to encourage more traffic. That move is expected to put a dent in revenue, however.
Also, the Texas Transportation Commission on Thursday will consider higher speed limits on a portion of the frontage roads alongside the 85 mph toll road, which could spell more bad news for the tollway, likely steering some traffic toward the free lanes.
The SH 130 Concession Co., a partnership of Spanish tollway company Cintra and San Antonio-based Zachry Construction Corp., over the past several years built the $1.3 billion, 41-mile road with its own equity and debt — including $430 million borrowed from the federal government — and is operating it under a 50-year contract with the Texas Department of Transportation. Neither the company nor TxDOT has released traffic or revenue figures for the road, which opened Oct. 24 and began charging tolls on Nov. 11.
More at http://www.statesman.com/news/news/local/light-130-traffic-prompts-credit-review-of-toll-de/nW5B4/ .