Effects on I-69 Bloomington-Martinsville section unclear after downgraded bond rating

As a result of those notices, Fitch Ratings has lowered its rating for the Indiana Finance Authority's private activity bonds, issued on behalf of I-69 Development Partners to help finance the project, to junk status.

The Indiana Finance Authority entered into a contract with I-69 Development Partners to design, build, finance, operate and maintain the 21 miles of I-69 between Bloomington and Martinsville in February 2014. I-69 Development Partners then contracted with Isolux to design and build Section 5 of the interstate.

Isolux has failed to live up to the terms of that contract, and I-69 Development Partners subsequently issued notices of default. The notices essentially serve as a warning before the issues become an actual default, said Scott Zuchorski, senior director with Fitch. While consequences of a default vary by contract, the most extreme would be a termination of the contract itself, he said.