NEW YORK–(BUSINESS WIRE)–#KBRA–Kroll Bond Rating Agency (KBRA) releases its outlook on the U.S. transportation sector, which discusses trends impacting the airport, mass transit, and toll roads/bridges subsectors.
The COVID-19 pandemic has had a severe impact on U.S. airport passenger activity, mass transit ridership, and toll road and bridge traffic volumes. While the magnitude varies by mode and location, as does the degree of recovery, almost all public transportation providers have recorded revenue declines, which has necessitated expenditure reductions and service cutbacks. The tenor of transportation agency responses has varied widely, with multiple rounds of federal stimulus grants providing needed support for operations and debt service payments and affording a bridge toward recovery.
In this report, we explore the recovery in user demand, risks posed by the rise of COVID variants, and implications of changes in travel behavior. The article also examines the potential for capital development through the recently passed Infrastructure Investment and Jobs Act (IIJA), as well as some of the increasing ESG concerns that public transportation providers are contending with.
Key Takeaways:
- The transportation sector recovery continues, but COVID variants may affect its trajectory.
- Most airports entered the COVID pandemic with strong liquidity, and federal government grants have bolstered these resources.
- Airport recovery is not uniformly equal, with smaller and less competitive airports at greater risk.
- Mass transit ridership recovery is slow, but sales tax revenue support has demonstrated resilience.
- Toll road and bridge traffic activity has been bolstered by commercial vehicle volumes.
- The recently adopted IIJA provides an important capital funding source.
- Transportation agencies are increasingly being confronted with social equity issues.
Click here to view the report.
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Contacts
Harvey Zachem, Managing Director
+1 (646) 731-2385
harvey.zachem@kbra.com
Yang Li, Associate Director
+1 (646) 731-1216
yang.li@kbra.com
Karen Daly, Senior Managing Director
+1 (646) 731-2347
karen.daly@kbra.com
Business Development Contacts
Bill Baneky, Managing Director
+1 (646) 731-2409
william.baneky@kbra.com
James Kissane, Senior Director
+1 (213) 806-0026
james.kissane@kbra.com
