Public Finance: U.S. Public Toll Roads, Bridges & Tunnels Revenue Bond Rating Methodology

Executive Summary

This document describes KBRA’s rating methodology as it pertains to publicly owned toll roads, bridges and tunnels facilities in the United States. It identifies the key rating determinants used in KBRA’s analysis and discusses how these determinants are applied in making a rating determination. For information on KBRA’s rating scale, please see KBRA’s Rating Scale and Definitions.

Toll facility revenue bonds are secured by user fees charged for access and use of the tolled facilities. Although a small portion of revenues may be attributable to other operations managed by the facility operator, repayment of debt is dependent on cash flow from toll revenues. The facilities covered by this methodology have at least five years of operating history. Facilities with an operating history have passed the construction and ramp-up phases and have a demonstrated traffic demand from which to assess…