Fitch Downgrades LAX SkyLink Bonds to Junk Status Amid Missed Deadline
Fitch Ratings has downgraded the debt associated with the Los Angeles International Airport (LAX) automated train system, now called SkyLink, to B-, pushing it deeper into junk bond territory. The agency cites near certainty that the contractor, LINXS, will miss a December 8 deadline to have trains ready for passenger service. This failure could trigger a technical default on approximately $1.2 billion in bonds and allow either party to terminate the contract. The project, originally scheduled for 2023, is now expected to open no earlier than February 2027, with costs ballooning to $3.3 billion from an initial budget of $2 billion.
