Monorail's bonds fall to 'junk' status.(news)

Publication: Las Vegas Review-Journal (Las Vegas, NV)

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COPYRIGHT 2005 Las Vegas Review-Journal

BYLINE: OMAR SOFRADZIJA, REVIEW-JOURNAL

Critics of the glitch-plagued Las Vegas Monorail might consider the transit line a piece of junk. Now, bonds that helped pay to build the system really are junk.

About $455.8 million in bonds were dropped to "speculative" grade, or "junk" status, by Moody's Investors Service on Wednesday amid concerns over lagging ridership and revenues to date.

The bonds, which covered a large chunk of the $650 million system's price tag, had been "investment" grade by the global credit ratings firm.

Although the downgrade has no effect on the monorail's day-to-day operations, it's a financial black eye for a system that's suffered a string of service pratfalls in 2004.

"The downgrade is...

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