(Reuters circulated the following article on May 4.)
NEW YORK — Standard & Poor’s on Wednesday said it may cut Amtrak’s debt ratings, citing concerns over future funding levels and possible changes to the scale of the railroad.
S&P said the 2006 budget proposed by the Bush administration allots less funding to Amtrak than in 2005. S&P said it may cut Amtrak’s debt ratings if monetary support from the government is less than what the railroad has indicated it needs.
S&P may cut Amtrak’s “BBB” corporate credit and senior unsecured ratings, which are two steps above junk status. Ratings downgrades can increase a company’s borrowing costs.