Monday, December 27, 2010

Moody's cuts Alameda Corridor debt rating despite strong year

Not really real estate, but more of the state of the economic and muni bonds.
The transportation authority has nearly $2.1 billion in outstanding senior and subordinate lien bonds from the construction of the corridor, which opened in 2002.
Moody's said it lowered its rating to Baa2 from Baa1 on the $992 million worth of subordinate lien bonds because it feared that the post-recession surge in international trade would not continue next year. Its rating on the senior lien bonds remained at A3.
Basically, any additional borrowing and it will financed at junk on rates.

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