Fitch Releases Global Rating Criteria for Toll Roads, Bridges and Tunnels

NEW YORK & LONDON & SINGAPORE--(BUSINESS WIRE)--Today, Fitch Ratings released its revised Global Rating Criteria for Toll Roads, Bridges and Tunnels. The report focuses on the analytical approach for evaluating debt secured by a wide range of toll roads, bridges, and tunnels in developed and developing countries. The criteria report applies to stand-alone facilities as well as systems or networks, and includes assets with an operating history and greenfield projects. It should be read in conjunction with the related global master criteria report, 'Rating Criteria for Infrastructure and Project Finance' published on Sept. 29, 2009.

The criteria expands on the analytical approach developed in 2007 by providing greater insight into how Fitch evaluates material risk factors. It follows the organization of the new global master criteria referred to above which focuses on six key areas: structure and information; completion risk; operations risk; revenue risk; macro risks; debt structure; and debt service and counterparty risk. Also, following on the master criteria, the report highlights what would be viewed as strong, midrange, or weak attributes for each of the key risk factors. Appendix D lists a scoring of these risk attributes (strong/midrange/weak) for typical publicly or privately managed toll roads. The attribute table provides qualitative guidance in assessing the attributes present in a project and are only part of the rating process.

Additionally, the report highlights Fitch's approach for developing base and rating case scenarios for managed lanes projects which are becoming more prevalent in the U.S. Appendix B highlights further clarity on Fitch's base and rating case assumptions for projects in developing countries. The report also includes a table highlighting indicative financial performance by rating category under a Fitch rating case and a peer comparison matrix.

The primary factors Fitch evaluates when rating a toll road include:

Project Analysis:

--Nature of the transportation link provided and exposure to competing alternatives.

--Legal and economic toll rate-raising ability.

--Historical and/or projected traffic profile and traffic composition.

--Economic and demographic fundamentals of the area served by the asset.

--Relevant country/political risks.

--Completion/delay/operator risk.

Financial Analysis:

--Debt service coverage/loan life coverage ratios in base/rating case scenarios.

--Overall leverage and debt structure/composition.

--Dependence on sustained traffic and revenue growth to meet financial obligations.

--Financial covenants that govern future leverage/equity distributions.

--Debt/equity ratio for greenfield projects.

The report 'Rating Criteria for Toll Roads, Bridges and Tunnels' is available on Fitch's website at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Related Research: Rating Criteria for Toll Roads, Bridges, and Tunnels

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=543265

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=468928

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