Fitch Rates Florida DOT 9B Payment Obligation 'A'

NEW YORK--()--In the course of routine surveillance, Fitch Ratings affirms the 'A' rating on the payment obligation of the Florida Department of Transportation (FDOT) related to the 9B Design-Build-Finance Project. The payments support the issuance of $59.1 million infrastructure improvement revenue bonds, series 2012(9B Design Build Finance Project), by the Florida Municipal Loan Council.

The Rating Outlook is Stable.

LEGAL FRAMEWORK: Pursuant to section 334.30 of Florida Statutes, FDOT can enter into design-build-finance (DBF) contracts and other public-private partnerships for projects included in FDOT's work program. Payments by FDOT can be made over time, as long as obligations for such payments in total do not exceed 15% of total federal and state funding for the State Transportation Trust Fund (STTF).

PAYMENTS SUBJECT TO APPROPRIATION: Bonds issued pursuant to this authorization are supported by statutorily authorized payments to be made by FDOT, subject to appropriation, and pursuant to a DBF contract. Fitch views the credit quality of the statutorily authorized payments to be made by FDOT pursuant to the DBF contract for the 9B project as commensurate with an 'A' rating.

The 'A' rating reflects the legislative acknowledgement of the project financing and parameters around future use of the security, the sound operating history of the Florida DOT, a record of solid management of transportation funding and assets, and a history of timely payment on contracts, as well as the state's solid economic fundamentals.

RATING SENSITIVITIES:

Maintenance of the 'A' rating will be based on stability of the statutory framework, and continued appropriation and inclusion of the project in future FDOT work programs. Rating is sensitive to fiscal stress at the state level that causes a significant downgrade of Fitch's GO rating.

For further detail, please see 'Fitch Affirms FL Municipal Loan Council Infrastructure Improvement Revs at 'A'', dated July 23, 2014, available at www.fitchratings.com.

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

Applicable Criteria and Related Research:

--'Tax Supported Rating Criteria' (Aug. 14,2012)

--'US State Government Rating Criteria' (Aug. 14, 2012)

Applicable Criteria and Related Research:

U.S. State Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686033

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=848954

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Contacts

Fitch Ratings
Primary Analyst
Karen Krop, +1-212-908-0661
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Laura Porter, +212-908-0575
Managing Director
or
Committee Chairperson
Douglas Offerman, +1-212-908-0889
Senior Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Karen Krop, +1-212-908-0661
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Laura Porter, +212-908-0575
Managing Director
or
Committee Chairperson
Douglas Offerman, +1-212-908-0889
Senior Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com