Moody’s has given the bonds a Baa2 rating, along with a stable outlook, based on factors including experienced local contractors and a highly rated offtaker in Michigan Department of Transportation (MDOT).
KBRA has assigned a BBB preliminary rating to the bonds.
The bonds are being issued by the Michigan Strategic Fund, which will lend the proceeds to Oakland Corridor Partners, the private consortium delivering the upgrade work. The money will be used to finance the partner’s obligations under a 30-year project agreement with MDOT to design, construct and maintain improvements to a segment of the I-75 in Oakland County, Michigan.
MDOT will pay Oakland Corridor Partners milestone payments during construction and availability payments during maintenance period contingent on meeting specific performance requirements.
Oakland Corridor Partners is comprised of: John Laing Investments (40% ownership); Aecom Capital (30%); Ajax Paving Industries (10%); Dan's Excavating (10%); and Jay Dee Contractors (10%).
The project reached commercial close last month.
I-75 bonds rated
Ratings agencies Moody’s and Kroll Bond Rating Agency (KBRA) have both assigned ratings to the $600m-worth of bonds issued to fund the I-75 improvement P3.
