Fitch: Sustained Growth to Continue for U.S. Transportation Sectors
OREANDA-NEWS. Slow and steady growth figures to be the theme for all major U.S. transportation sectors for remainder of this year and headed into 2016, according to Fitch Ratings in a new report.
The theme during the first six months of 2015 was sustained, improved growth across all three transportation sectors (airports, ports and toll roads). Factors driving this trend included improving national economic conditions, stronger dollar driving imports and sustained lower fuel prices.
'International hub airports are expected to lead overall airport passenger traffic growth, whereas ports throughput nationwide is forecasted to stem largely from GDP growth,' said Director Tanya Langman. 'As for toll roads, facilities within the southeast and southwest are expected to continue to lead in traffic performance.'
All transportation sectors are likely to retain pricing power in the face of possible inflationary rate increases in the near to medium term. Reasons for this include fuel-savings benefits and lower import prices, as well as the expectation for modest volume growth, reflecting slowing economic growth forecast through the remainder of the year.
As for rating performance, Rating Outlooks across airports, ports and toll roads should remain Stable. That said, positive rating momentum is unlikely over the near term. 'Moderately accelerating growth will be offset by increasing capital improvement spending needs across all sectors' said Langman.
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