Market Overview

Citing the 73 Toll Road as a "Congestion Reliever," S&P Global Ratings Upgrades San Joaquin Hills Transportation Corridor Agency Senior-Lien Bonds to A-

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In a continuing trend that underscores the strength of the
Transportation Corridor Agencies' financial picture, S&P Global Ratings
announced they have raised its rating of the San Joaquin Hills
Transportation Corridor Agency's (SJHTCA) senior-lien toll road
refunding revenue bonds and junior-lien toll refunding revenue bonds to
A- and BBB+, respectively, with a stable outlook.

The upgrade by S&P follows recent
rating upgrades
for the San Joaquin Hills and Foothill/Eastern
Transportation Corridor Agencies' bonds by Moody's Investor Services and
Fitch Ratings in July 2017.

S&P reported the Agencies' Board of Directors and management staff as
reasons for the strong enterprise risk profile noting very strong
management and governance, evidenced through an experienced management
team with good board oversight.

"S&P Global Rating's upgrade of the 73 Toll Road's senior-lien bonds to
A- is an exciting and strong indicator that The Toll Roads of Orange
County are financially healthy and prepared to provide a valuable
transportation option for drivers into the future," said Fred Minagar,
Chair of the San Joaquin Hills Transportation Corridor Agency and Laguna
Niguel Councilmember.

"I am proud of the steadiness the Board of Directors and management
staff have shown. It is because of the visionary leadership of past
Boards that we can celebrate another financial achievement today,"
Minagar said.

"The road's market position is strong, in our opinion," the S&P report
states. "It operates in an area with a population that is road-network
reliant; thus its role as a congestion reliever with surrounding free
alternatives that are among the most heavily-trafficked and congested in
the country, leads us to believe that [it is] becoming a virtual
requirement for drivers who depend on time savings."

The San Joaquin Hills and Foothill/Eastern Transportation Corridor
Agencies are two joint powers authorities created to plan, finance,
construct and operate Orange County's 51-mile toll road network – the
73, 133, 241 and 261 Toll Roads. The Toll Roads have been providing a
choice for drivers for more than 20 years and the tolls collected are
used to fund debt service issued to construct the system, operations and
capital projects. Currently, more than 330,000
daily transactions
are recorded on the 51-mile toll road system that
represents 20 percent of Orange County's highways and is the largest
toll road network in California.

The Transportation Corridor Agencies (TCA) are two joint
powers authorities formed by the California legislature in 1986 to plan,
finance, construct and operate Orange County's 67-mile public toll road
system. Fifty-one miles of the system are complete, including the 73,
133, 241 and 261 Toll Roads. TCA continues to meet the region's growing
need for congestion-free transportation alternatives.

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