Kroll Bond Rating Agency Releases U.S. Public Toll Roads, Bridges, & Tunnels Revenue Bond Rating Methodology (5 years operating history)
Kroll Bond Rating Agency (“KBRA”) released today methodology to rate U.S. Public Toll Roads, Bridges & Tunnels Revenue. The methodology identifies the factors used when rating debt issued to finance publicly owned toll roads, bridges and tunnels facilities in the US with five or more years of operating history. The methodology also discusses the key rating determinants used in the rating assessment and discusses how these are applied in making a rating determination.
KBRA's analysis is based on both quantitative and qualitative factors and is assessed through a comprehensive review of a public sector toll revenue bond's size and scope of operation, demand assessment, management/regulatory framework, financial profile and security provisions. The size and scope of toll facility operations is an important consideration in the rating assessment. KBRA defines toll facilities as either multi-asset or single-asset facilities. Multi-asset facilities are those facilities with multiple assets and toll barriers that make up a network of transportation routes. Single asset facilities, by contrast, are stand-alone facilities with only one toll barrier in each direction. Other qualitative factors incorporated include the governmental authority's experience and track record in managing the toll facility as well as the politics of raising toll rates and the process involved in implementing rate increases. Quantitative factors focus on the composition of traffic utilizing the facilities, historic traffic patterns and trends, economic and demographic characteristics of the service area, operating history, leverage and security provisions.
To view the report please visit www.krollbondratings.com.
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).