Moody’s Warns Investors on Infrastructure-Related Debt

Moody’s Investors Service told clients that transportation infrastructure needs are one of the driving forces of United States public finance in a March 10 Credit Outlook note.

“Sizable ongoing infrastructure needs, coupled with stagnant federal and state gas tax revenues, threaten to put negative pressure on future budgets or trigger increased borrowing — a credit negative,” Moody’s analyst Julius Vizner said.

The report said transit systems have more problems than highways because public transit systems are constrained by more revenue rules.