Turnpike Trouble

Interest rates are threatening to rise on bonds sold by the West Virginia Turnpike's parent agency for project revenue.

As The Register-Herald of Beckley and The Charleston Gazette report, the company that insures this bonds has been hit hard by the ongoing subprime mortgage mess.

As a result, Moody's Investor Service has significantly downgraded the "insurance financial strength" ratings of Financial Guaranty Insurance Company and its related companies.

"These ratings remain on review for possible downgrade, reflecting continuing uncertainty about the firm's strategic and capital plans," the Wall Street rating agency said in a release. "An unfavorable outcome in those areas could lead to a lower financial strength rating."

"Without the guarantee of an AAA rating, interest rates that Parkways has to pay to the holders of about $100 million in outstanding bonds will go up - potentially creating a funding crisis for the authority," The Gazette reported following Monday's meeting of the Parkways, Economic Development and Tourism Authority.