RITBA bonds rated ‘A+’ by Standard & Poor’s

STANDARD & POOR'S RATINGS SERVICES gave bonds that the R.I. Turnpike and Bridge Authority is set to issue its third-highest rating. The agency plans to use proceeds from the bonds to perform work on the Newport Pell Bridge (shown) as well as the other three bridges it has responsibility for. / COURTESY R.I. TURNPIKE AND BRIDGE AUTHORITY
STANDARD & POOR'S RATINGS SERVICES gave bonds that the R.I. Turnpike and Bridge Authority is set to issue its third-highest rating. The agency plans to use proceeds from the bonds to perform work on the Newport Pell Bridge (shown) as well as the other three bridges it has responsibility for. / COURTESY R.I. TURNPIKE AND BRIDGE AUTHORITY

JAMESTOWN – Standard & Poor’s Ratings Services has assigned an A-plus, long-term rating to a series of bonds expected to be executed soon by the R.I. Turnpike and Bridge Authority.

The $128.3 million bond issue will be used for the repair and rehabilitation of the Newport Pell Bridge, including installation of a new median barrier, as well as projects affecting the Jamestown Verrazzano Bridge, the Sakonnet Bridge and the Mount Hope Bridge, according to information provided by RITBA CFO Maggie Baker.

Additional work will include improvements on Route 138, to approach roads in Jamestown and facilities in Bristol.

A portion of the bonds will refinance bond anticipation notes issued in 2014, according to Standard & Poor’s.

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The 2016A motor fuel tax revenue bonds will be secured by the state’s collection of a 3.5 cent-per-gallon tax on gasoline, part of the fuel tax that is now 33 cents. The tax is tied to fuel consumption, which Standard & Poor’s expects will be higher in periods of low fuel prices.

“It is Standard & Poor’s position that oil and gas prices will likely remain low through 2017,” the agency said, in a press release.

Rhode Island’s economy is somewhat weak compared to many other states, the ratings service said, with gross domestic product expected to increase by 2.15 percent in 2016. But regional economic growth will accelerate through 2016, it predicted.

The rating assigned to the bonds is the third-highest available through Standard & Poor’s. The outlook for the bonds was classified as stable, the ratings service announced on Wednesday. RITBA was pleased with the decision, according to Baker.

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