How Does the Health of Transportation Infrastructure Affect State Credit Ratings? An Empirical Analysis

This article reports on an empirical analysis done to ascertain how the health of the transportation infrastructure affects state credit ratings. The authors first review the literature on this topic and then describe their creation of an infrastructure health index to measure the physical conditions of state highway transportation systems. They used this index score to estimate the effect of the state’s transportation health on the Moody’s and Standard and Poor’s state credit ratings. The data set used covered from 1999 to 2009. Results showed that the poorer the quality of a state’s highway infrastructure, the higher the probability that the state will be in the medium or low credit rating category for general obligation (GO) bond ratings. The authors conclude with a discussion of the practical implications for state governments seeking to improve their capital and infrastructure management, stressing that an efficient and well-maintained public transportation infrastructure is vital for economic development.


  • English

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  • Accession Number: 01601763
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 19 2016 10:09AM