S&P Global Ratings: GARVEE Sector view stable even amid construction cost inflation

S&P Global Ratings said today that its view of the federal-grant-secured transportation sector is stable, despite high construction input costs that continue to erode the anticipated benefits of Infrastructure Investment and Jobs Act funding.

The report, "Reliable Funding Continues To Support Stable GARVEE Sector View Amid Stubborn Construction Cost Inflation," published today on RatingsDirect, shows most grant anticipation revenue vehicle (GARVEE) ratings in the 'AA' category.

"We expect reliable funding and continued strong support for transportation infrastructure investment across all levels of government," said S&P Global Ratings credit analyst Kayla Smith.

"Our analysis of key financial metrics for fiscal 2022 shows that GARVEE programs have very strong maximum annual debt service coverage that we do not expect will materially erode as states and regional transportation agencies potentially issue more debt to maintain and expand investment in roads and transit," Ms. Smith added.

The report is available to subscribers of RatingsDirect at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to [email protected]. Rating information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.