Traffic flows between I-69 Section 5 construction barrels on Ind. 37 at the exit for Ind. 45/46 Bypass earlier this week. Staff photo by David Snodgress
Herald-Times and Wire Report
Construction delays along the Interstate 69 segment that will run from Bloomington to Martinsville have prompted a New York-based company to once again downgrade the status of bonds issued for that project, the third downgrade reported this year.
Fitch Ratings said Wednesday it's lowered from BB to B the status of bonds issued on behalf of the segment's private developer, I-69 Development Partners LLC.
The Indianapolis Star and Morningstar.com reported Fitch cited "continued delays in construction and unresolved disputes" between I-69 Development Partners, the Indiana Finance Authority and Isolux Corsan, which was hired to build the segment.
The project's subcontractors temporarily walked off the job last month after not getting paid amid those disputes, the second walkoff this year.
The state finance authority sold almost $250 million worth of tax-exempt private activity bonds on behalf of I-69 Development Partners in July 2014 to help finance the $325 million project.
Those bonds were originally given a BBB or investment-grade rating. That rating was lowered to BBB- in April of this year, when the expected completion date was extended by about eight months due to delays in obtaining permits. Further delays in meeting a revised schedule, along with default notices issued by the developer, resulted in an August downgrade to BB. Similar issues are behind the most recent additional downgrade to B.
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