Fitch rates NCTA Triangle Expressway bonds 'BBB-'

Fitch are rating North Carolina Turnpike Authority's Triangle Expressway bonds 'BBB-'. They include:

- $211m of Triangle Expressway (TE) current interest revenue bonds

- $84m of TE capital appreciation bonds

- $400m of TIFIA debt

The raters say the rating is based on robust historic population and employment growth in the Raleigh NC metro area where the Triangle Expressway is a western fringe connector. They say there is a strong covenant for bondholders requiring toll rate increases if coverage drops below 1.3x debt service requirements.

NCTA has a fixed price design-build contract.

The bonds are due to be priced in the week starting June 22.

Triangle Expressway is a 30km (19 mile) 3+3 lane tollroad based on all-electronic tolling.

TOLLROADSnews 2009-06-26