Troubled LAX people mover drops further into junk bond status as key deadline nears

LOS ANGELES — Credit agency Fitch Ratings has dealt another blow to the troubled Skylink people mover train at Los Angeles International Airport, downgrading the project's debt deeper into junk bond territory over the continued inability of the contractor and city's airport department to complete the project. The downgrade — to B-, from BB four months ago — "reflects the near certainty" that contractor LINXS won't have the 2.25-mile train running by Dec. 8, leading to a "technical event of default and could give rights to either LINXS or Los Angeles World Airports ... to issue project termination notices," Fitch said in a report this week. kAmQxEVD 2? F?4@>>@? 24E:@? @7 D6G6C:EJ[Q u:E49 2?2=JDE $6E9 {69>2? E@=5 E96 {@D p?86=6D %:>6D] Q(6 H6C6 F?56C E96 G:6H E92E E96C6 H2D 2 72:C 2>@F?E @7 4FD9:@? 7@C {p(p 2?5 {x})$ E@ D6EE=6 @? 5:DAFE6D[ @C 7@C {x})$ E@ D9@H E92E E96J 42? 92G6 E96 EC2:?D CF? D276=J A6C E9:D C6=:23:=:EJ E6DE]Qk^Am kAm%96 4@?EC24E@C 2=C625J 92D D2:5 E92E E96 EC2:? H@?VE 36 C625J F?E:= u63CF2CJ a_af — @C 6G6? =2E6C] x? 2 DE2E6>6?E E@ %96 %:>6D @? %9FCD52J[ 2 DA@<6DA6CD@? D2:5 E92E Q{x})$ C6>2:?D 4@>>:EE65 E@ H@C<:?8 H:E9 {p(p E@ DF446DD7F==J 56=:G6C E96 pFE@>2E65 !6@A=6 |@G6C 2?5 AC@G:56 2 H@C=5\4=2DD EC2?DA@CE2E:@? DJDE6> 7@C E96 {@D p?86=6D C68:@?]Qk^Am kAm{x})$[ 2? 24C@?J> 7@C {p) x?E68C2E65 tIAC6DD $@=FE:@?D[ :D 2 4@?D@CE:F> E92E :?4=F56D u=F@C[ q2=7@FC q62EEJ[ p=DE@> %C2?DA@CE &$p[ pr$ x?7C2DECF4EFC6 s6G6=@A>6?E[ w}%q 2?5 sC282@D &$p] {x})$ 564=:?65 4@>>6?E 36J@?5 E96 DE2E6>6?E]k^Am kAmp:CA@CE @77:4:2=D 564=:?65 E@ 36 :?E6CG:6H65[ :?DE625 :DDF:?8 2 DE2E6>6?E D2J:?8 E96J 5@ Q?@E :?E6?5 E@ 4@>>6?E @? >2EE6CD C6=2E65 E@ AC:G2E6 7:?2?4:?8 2CC2?86>6?ED[ =6?56C 5:D4FDD:@?D[ 4@?EC24EF2= >:=6DE@?6D[ @C C2E:?8 286?4J 564:D:@?D :?G@=G:?8 E96 {x})$ 4@?D@CE:F>]Qk^Am kAmQ(6 2C6 H@C<:?8 H:E9 {x})$ 2C@F?5 E96 4=@4< E@ 6?DFC6 E96J 4@>A=6E6 E96 ?646DD2CJ E6DE:?8 E@ 3C:?8 $65:6D H:E9:? E96 4@?EC24E E@ 9@=5 E96> 244@F?E23=6[Q E96 DE2E6>6?E 25565]k^Am kAm%96 5625=:?6 7@C E96 EC2:?VD 4@>A=6E:@? :D s64] g] p=E9@F89 E96 2:CA@CE @C E96 4@?EC24E@C 4@F=5 E649?:42==J E6C>:?2E6 E96 4@?EC24E 2E E92E E:>6[ {69>2? ?@E65 E92E E96C6VD 2 `a_\52J 3F776C:?8 A6C:@5 E@ 2==@H 7@C 255:E:@?2= E:>6 E@ D6EE=6 :DDF6D]k^Am kAmQp7E6C J@F 86E A2DE E92E 52E6[ E96? E96 BF6DE:@? 364@>6Di (:== 3@E9 D:56D DE:== H2?E E@ H@C< H:E9 6249 @E96C[ @C ;FDE 564:56 E@ 7:?5 2 A2E9 E@H2C5 D6A2C2E:@?nQ {69>2? D2:5 23@FE E96 >@?E9D\=@?8 8C246 A6C:@5]k^Am kAm%96 4@?EC24E@C 2?5 4:EJ 2:CA@CE @77:4:2=D 92G6 =@?8 366? 2E @55D]k^Am kAmk2 9C67lQ9EEADi^^HHH]=2E:>6D]4@>^42=:7@C?:2^DE@CJ^a_ae\_f\`c^=2I\A6@A=6\>@G6C\4@?EC24E@C\DF6D\4:EJQm{x})$ 7:=65 2 4@>A=2:?E 282:?DE E96 4:EJk^2m @G6C E96 DF>>6C 3=2>:?8 E96 2:CA@CE 7@C E96 56=2JD] {2DE >@?E9[ E96 2:CA@CE 5:DAFE65 >F=E:A=6 4=2:>D E92E E96 4@?EC24E@C >256 :? :ED >@?E9=J 3C:67 @? E96 AC@;64E] p?5 >66E:?8D 36EH66? 49:67 6I64FE:G6D 7@C E96 4@?EC24E@C[ 2:CA@CE @77:4:2=D 2?5 @E96CD E92E 3682? =2DE J62C DE@AA65 :? pF8FDE]k^Am kAmp=E9@F89 @77:4:2=D D2J E96 AC@;64E :D hhT 5@?6[ E96C6 2C6 >F=E:A=6 F?C6D@=G65 :DDF6D] p8C66>6?ED E@ k2 9C67lQ9EEADi^^HHH]=2E:>6D]4@>^42=:7@C?:2^DE@CJ^a_ae\`_\ah^DA=6>6?E D@=2C 6?6C8J @? E96 AC@;64Ek^2m 92G6 ?@E 366? D:8?65 H:E9 E96 4:EJVD s6A2CE>6?E @7 (2E6C 2?5 !@H6C[ 2?5 E96 42FD6 @7 E649?:42= AC@3=6>D H:E9 E96 EC2:? 2C6 DE:== F?56C :?G6DE:82E:@?[ 244@C5:?8 E@ 2 C646?E C6A@CE 7C@> E96 4@?EC24E@CVD E649?:42= 25G:D6C]k^Am kAmx? @C56C 7@C E96 EC2:? E@ CF?[ :E >FDE F?56C8@ b_ 52JD @7 4@?D64FE:G6 E6DE:?8 H:E9@FE DF3DE2?E:2= :DDF6D 2?5 86E 2 D:8?\@77 7C@> E96 2:CA@CE 2?5 2? @FED:56 2DD6DD@C] %92E >@?E9=@?8 E6DE:?8 A6C:@5 92D 4@?E:?F65 E@ C6DE2CE]k^Am kAm%96 Sb]b\3:==:@? EC2:? :D E96 >@DE\2?E:4:A2E65 762EFC6 @7 E96 2:CA@CEVD Sb_\3:==:@? @G6C92F=] xE H2D :?:E:2==J D=2E65 E@ @A6? :? a_ab — 367@C6 E96 (@C=5 rFA 2?5 E96 $FA6C q@H= 2?5 =@?8 367@C6 E96 a_ag ~=J>A:4D] xEVD ?@H E9C66 J62CD 369:?5 D4965F=6 2?5 >@C6 E92? S` 3:==:@? 36J@?5 :ED @C:8:?2= 4@?DECF4E:@? 3F586E] (96? :E 5@6D @A6?[ E96 2:CA@CE D2:5 :E H:== D9FEE=6 EC2G6=6CD 36EH66? E6C>:?2=D[ A2C<:?8 =@ED[ E96 {p)^|6EC@ %C2?D:E r6?E6C 2?5 2 ?6H C:56\92:= =@E]k^Am kAm{69>2? ?@E65 E92E E96 EC2:? :D 92C5=J 2 ?@G6= AC@;64E 2D >2?J >2;@C 2:CA@CED 92G6 @?6[ >2<:?8 E96 56=2JD 2E {p) 2== E96 >@C6 4@?7@F?5:?8]k^Am kAmQt249 E:>6 E96C6VD 2 A2E9 E@H2C5D @A6?:?8[ E96C6VD 2 D6E324<[Q 96 D2:5]k^Am