DALLAS -- U.S. airports, ports, and toll roads should experience healthy growth in 2016 with the three sectors expected to benefit from a recovering economy and low fuel prices, Fitch said in an outlook report.
The credit outlooks are expected to remain stable in 2016 for the sectors, which should continue the steady growth from last year although capital needs also will increase, Fitch said.
"Moderate growth will likely be offset by increasing capital improvement spending needs across all sectors, driven somewhat by lower borrowing costs for new money issuance," the analysts said.
International hub airports will lead an expected 3% to 3.5% increase in overall air passenger traffic, while ports will benefit from a stronger dollar that will make imports cheaper, the report said. Toll roads in the growing Southeast and Southwest regions should continue to lead in traffic performance, much as they did in 2015.
"All transportation sectors will likely retain ample pricing power, ensuring at least inflationary rate increases in the near to medium term, reflecting fuel-savings benefits and lower import prices, as well as the expectation for steady volume growth," the report said.