Agency Begins Selling Alameda Corridor Bonds
Having received improved ratings for its revenue bonds, the government agency in charge of building the $2.4-billion Alameda Corridor project began selling almost $1.2 billion in debt to investors Tuesday.
Earlier this month, three Wall Street ratings agencies gave the Alameda Corridor Transportation Authority marks ranging from BBB to A for tax-exempt and taxable bonds that are scheduled for sale over the next two weeks.
After obtaining bond insurance, Moody’s, Fitch and Standard and Poor’s upgraded the corridor’s bonds to AAA and Aaa, some of the highest ratings possible. Bond ratings reflect the amount of risk for investors with AAA being the lowest risk, while D is the highest risk.
The bonds will help finance a 20-mile-long expressway for freight trains that will link the fast-growing ports of Los Angeles and Long Beach with transcontinental rail yards near downtown Los Angeles.
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