I-69 bonds downgraded again

The bonds sold to help pay for construction of the Interstate 69 Section 5 project have been downgraded again, due to ongoing financial issues with the company hired to design and build the 21-mile section of highway.

The nearly $244 million worth of tax-exempt private activity bonds the Indiana Finance Authority issued on behalf of private contractor I-69 Development Partners have been downgraded from “B” to “B-,” according to a news release from New York-based Fitch Ratings.

The bonds initially received a “BBB” or investment grade rating when they were sold in 2014. Delays in the project completion schedule have led to a succession of downgrades since then, with the bonds receiving a “BB” or junk rating in August 2016.

The most recent downgrade is the result of Fitch’s concern about whether Isolux Corsan LLC would be able to meet its financial obligations laid out in a memorandum of understanding intended to settle time and cost disputes. On more than one occasion, subcontractors stopped working on the project due to payment disputes with Isolux Corsan LLC, the company I-69 Development Partners hired to design and build Section 5.

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