Posted: Jun 20, 2014 12:50 AM
Updated: Jun 20, 2014 12:50 AM
SAN ANTONIO (AP) A Central Texas toll road world famous for its 85-mph speed limit continues to struggle financially, with revenue of only 30 percent of original projections.
Moody's Investor Service reported Thursday that the company that built the privately managed leg of Texas 130 southeast of Austin lacks the money to meet a payment due June 30 on the $1.18 billion loan that financed the construction.
But Moody's says that SH 130 Concession Co. is negotiating refinancing with 10 banks that financed the original loan, so default is unlikely.
In May 2013, Moody's downgraded SH 130's credit rating by four grades because the road was carrying only half the traffic projected when it opened October 2012.
An SH 130 spokeswoman says the company remains confident that prosperity is just around the corner.