Insurance News Net.com
February 18, 2011 | Business Wire, Inc.
NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms the 'AA-' rating on approximately $1.034 billion of outstanding Oklahoma Turnpike Authority ('OTA' or the 'Authority') refunding second senior revenue bonds. The Rating Outlook for all authority bonds is Stable.
RATING RATIONALE:
The Stable Outlook reflects the Authority's demonstrated mature and stable traffic profile, particularly through the most recent economic downturn, while retaining significant rate-making flexibility. The short term traffic fluctuations and economic downturns have proven to have marginal impact on OTA's long term growth potential and financial strength given the diverse local, state-wide, and national markets serviced by the Turnpike Systems. The OTA's legislatively granted authority to fix and revise tolls has allowed it to pass a 16% increase in August of 2009 at the height of the recession to mitigate the effects of reduced commercial traffic and also in anticipation of the widening of both the Kilpatrick and Creek Turnpikes which are both operating close to capacity. While new transportation projects over the life of the bonds cannot be ruled out, the Authority's prudent fiscal management practices, as well as strong revenue bond legal provisions and the availability of Motor Fuel Excise Tax ('MFET'), provide adequate assurance that debt service coverage will be maintained at levels commensurate with the 'AA' rating category... FULL ARTICLE
Posted on
Fri, February 18, 2011
by John Cox