The toll-road authority of Orange County, Calif., is nearing the biggest municipal default since Detroit's record bankruptcy, according to a Bloomberg report.
The Foothill-Eastern Transportation Corridor Agency, which operates 39 miles of toll highways, has trailed revenue projections for six years. It risks default on $2.4 billion in debt, according to a consultant to the Debt and Investment Advisory Commission of California Treasurer Bill Lockyer.
Bonds for three highways traded last month at their lowest price this year and are rated just one step above junk.
See the full report here.