Tuesday, July 12, 2016

Harrisburg's Parking Bonds Drop to Junk

In more bad news for Harrisburg, the  bonds issued by the Pennsylvania Economic Development Financing Authority (PEDFA) to fund parking operations in Harrisburg dropped to the top rank  of speculative grade,  BB+ , per S&P.  The parking system failed to make the revenue the bonds required for the past two years and is likely to fall short this year.  The parking bonds were part of a fiscal recovery plan for Harrisburg following a near insolvency crisis from its failed incinerator project.  Under a court approved plan, PEDFA took over Harrisburg's parking system under a long term lease.  In 2013, it issued about $285 million in bonds backed by parking revenue and used the cash to help pay off creditors.

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