KBRA Affirms Ratings to Public Finance Authority (Georgia SR 400 Express Lanes Project) $3.4 Billion PABs and SR 400 Peach Partners, LLC’s $3.9 Billion TIFIA Loan
3 Aug 2026 | New York
KBRA affirms its ratings to the Public Finance Authority's $3.4 billion senior lien toll revenue bonds, series 2025 (Georgia SR 400 Express Lanes Project) (the private activity bonds (PAB)), which support the Georgia SR 400 Express Lanes Project. KBRA also affirms its rating to SR 400 Peach Partners, LLC’s $3.9 billion TIFIA loan. The Outlook is Stable.
SR 400 Peach Partners, LLC (the borrower), wholly owned by a consortium formed by Meridiam SR-400, LLC, Acciona Concesiones S.L., and ACS Infrastructure Development Inc. (collectively the sponsors) is developing the SR 400 express lanes in Atlanta (the project). The project is part of Georgia Department of Transportation’s (GDOT) major mobility investment program (MMIP). The dynamically priced express lanes will extend through 16 miles along Georgia state route 400, between the MARTA North Springs Station in Fulton County, and McFarland Parkway in Forsyth County. The project is a key north-south corridor serving the Atlanta-Sandy Springs-Alpharetta metropolitan area, connecting the city to its northern suburbs.
The Public Finance Authority issued $3.4 billion in private activity bonds (PAB) as a conduit issuer and lent the proceeds to the borrower. Concurrently, the borrower entered into a separate loan agreement with TIFIA for an additional $3.9 billion that will be generally subordinated to the PABs.
Key Credit Considerations
(+) Project Progress and Schedule in Line With Expectations
The project continues to progress in line with expectations following financial close. Design completion advanced from 67.2% in February 2026 to 84.1% as of June 2026, while construction activities have expanded across all three project segments. The project continues to target service commencement on February 14, 2031, consistent with KBRA's initial expectation of Q1 2031. Project spending remains below budget due primarily to timing differences rather than cost savings, and no material cost overruns or changes to the approximately $4.7 billion design-build budget have been reported.
(+) NEPA Approval and Commencement of Major Construction
The project reached two significant construction milestones during the review period. On April 15, 2026, the Federal Highway Administration (FHWA) approved the project's National Environmental Policy Act (NEPA) re-evaluation, satisfying a key environmental permitting requirement. Shortly thereafter, the project achieved notice to proceed 3 (NTP3) on April 21, 2026, after completing all remaining conditions precedent required by the Georgia Department of Transportation (GDOT). Issuance of NTP3 formally authorized full construction activities, allowing the project to transition from early works into major construction. Since then, work has expanded across Segments A, B, and C, including clearing and grubbing, earthwork, drainage installations, temporary erosion controls, material staging, and related field activities.
(+) Right-of-Way Acquisition and Utility Coordination
Right-of-way (ROW) acquisition and utility coordination continue to advance in line with the construction schedule. The ROW acquisition plan has been approved by GDOT, and all title searches, surveys, owner outreach activities, special reports, and appraisals for all but three developer-acquired parcels have been completed and approved by GDOT. As of June 2026, 15 of the 18 required offer packages had been submitted to GDOT, with the remaining packages expected to follow after completion of final plan updates. Utility coordination also continues to progress, with 151 planned utility relocations identified across the corridor and ongoing coordination among approximately 20 utility owners. Management continues to report that both ROW acquisition and utility work remain on schedule to support planned construction activities.
(-/+) Demand Risk
Revenues will be derived from toll revenues, which exposes the transaction to considerable demand risk, and to the impacts of future economic downturns on the traffic levels in the express lanes. Mitigating this risk is the stable demand of the surrounding communities located close to the corridor. The lanes will serve key residential communities north of Atlanta, covering a total distance of 16 miles between MARTA North Springs Station in Fulton County and the McFarland Parkway Interchange in Forsyth County. Between 2022 and 2023, Forsyth County experienced population growth of 2.09%, reaching an estimated 272,887 residents and employment growth of 3.57% from the previous year. Projections for 2025 estimate the population at approximately 284,037, indicating a continued annual growth rate of around 2%. The region is mostly composed of affluent residents who are anticipated to be willing to pay higher tolls for access to the express lanes.
(+) Concession Term
The concession term will last 50 years from the services commencement date (expected Q1 2031). The concession term will exceed the term of the rated debt by over 15 years, which provides the borrower with the ability to generate revenues after the maturity date. Under the project agreement with the State Road and Toll Authority, the borrower has the exclusive right to toll revenues generated by the project over the 50-year concession term following service commencement. KBRA estimates that the project will continue to be operational during this time frame with regular maintenance and prudent life cycle management.
Surveillance Rating Rationale
The ratings affirmations reflect KBRA's view that construction of the express lanes continues to progress largely in line with expectations. During the review period, the project achieved two significant milestones with the FHWA's approval of the NEPA re-evaluation and the subsequent issuance of NTP3, allowing the project to transition from early works into full construction. Design completion has continued to advance, construction activities are underway across all project segments, and the project continues to target service commencement in February 2031, consistent with KBRA's original expectations. In addition, no material cost overruns or schedule delays have been reported, liquidity remains adequate to support ongoing construction activities, and right-of-way acquisition, utility coordination, and permitting continue to progress substantially in accordance with the project schedule.
Outlook
The Stable Outlook reflects KBRA’s view that construction progress will remain in line with expectations. The ratings could be downgraded if delays in construction push the service commencement date beyond KBRA’s expectations. A ratings upgrade is unlikely during the construction phase of the project.
Rating Sensitivities
A ratings upgrade is unlikely during the project’s construction and ramp-up phases. A rating upgrade could occur after operations commence and traffic and revenues stabilize after their ramp-up period at levels that outperform KBRA’s projections.
KBRA may downgrade the ratings if construction does not progress according to schedule and the delay in substantial completion impacts the project’s expected financial performance. A downgrade after construction could occur if traffic volumes are significantly lower than KBRA’s projections during the operations phase.
To access ratings and relevant documents, click here.