Las Vegas Monorail Bonds: Default Imminent or Inevitable?

Bloomberg News reports today (20090622) that $450 million of municipal bonds that provided most of the funding for Las Vegas Monorail had their credit rating further reduced today by Fitch Ratings. Bloomberg indicated that this action implies “default of some kind appears imminent or inevitable.”

This apparently impending financial embarrassment was predicted in our 2000 Public Purpose report on the Las Vegas Monorailbefore the bonds were issued. The problem, as we predicted, is that ridership has fallen far short of projections, which is a fairly standard occurance with respect to large transit infrastructure projects.

Las Vegas Review Journal Article

Las Vegas Monorail: Bond Default Imminent?
Las Vegas Monorail: Bond Default Inevitable?