Citing stronger-than-expected traffic and revenue performance, Fitch Ratings has upgraded the bond rating of the 91 Express Lanes from A- to A. Fitch Ratings is one of the nation’s leading rating agencies.
A high bond rating indicates financial strength and well-managed resources. It helps attract investments that make the lanes something customers can count on day after day – a safe, reliable, swift way to get where they need to go when they need to be there in a timely fashion.
In upgrading the rating, Fitch said that the rating outlook is stable in part because of the Express Lane’s long history, solid long-term prospects for continued traffic growth, strong debt-service coverage, and no plans for further debt issuance.
In July 2013, the Board approved the issuance of the 91 Express Lanes Series 2013 Refunding Bonds (the current outstanding balance is $114.4 million). In the 2014-15 fiscal year, the 91 Express Lanes traffic and revenue increased 6.8 percent and 9.3 percent, respectively, outperforming the growth rates Fitch had expected in an earlier credit review.
The 91 Express Lanes, which solely uses electronic tolling, was the first fully automated toll road in the world and the nation’s first to employ variable pricing. With two lanes in each direction, toll prices vary by hour, day of the week and direction of travel based on a predetermined toll schedule that optimizes traffic flow.
Since OCTA purchased the 91 Express Lanes in January 2003, the objective has been to maximize the number of cars traveling through the SR-91 corridor, rather than maximizing revenue.
The success of the 91 Express Lanes in Orange County has prompted the Riverside County Transportation Commission to extend the tolled express lanes into Riverside County; the 8-mile extension is set to open in early 2017.
