NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: U.S. GARVEE Bonds — 2014 Sector Briefing
Increasingly, state and local governments are realizing the benefits of risk transfer, cost certainty and asset preservation through public-private partnerships (P3), while airports, ports and GARVEEs are holding steady, according to several new Fitch Ratings reports.
'Near-term, the P3 pipeline is expected to grow, both for new project construction and expanded existing projects. Completion risk remains a prominent factor, so more intensive risk analysis is still an important consideration,' said Scott Zuchorski, Senior Director.
For U.S. airports, a renewed economic downturn or airline service shift could result in negative rating actions, while U.S. port ratings could change if the balance of trade is altered after the Panama Canal expansion opens.
The current legislation for U.S. GARVEE bonds expires Sept. 30, 2014 but barring a fundamental shift in the nature of the federal program, GARVEE bond ratings are unlikely to significantly decline.
Two-thirds of states currently have P3-enabling legislation in place, and, given the size of future capital needs, a steady stream of P3 projects is likely to continue for the foreseeable future.
For more information, four special reports titled 'U.S. Airports - 2014 Sector Briefing'; 'U.S. Ports - 2014 Sector Briefing'; 'U.S. GARVEE Bonds - 2014 Sector Briefing'; and U.S. Public-Private Partnerships (P3) - 2014 Sector Briefing' are available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the links.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
U.S. Airports — 2014 Sector Briefing
U.S. Public-Private Partnerships (P3) — 2014 Sector Briefing
U.S. Ports — 2014 Sector Briefing