Regional Transportation, Colo., COPs Downgraded to A-Plus by Fitch

Fitch Ratings said it downgraded to A-plus from AA-minus the Regional Transportation District, Colo.'s $503.2 million outstanding certificates of participation.

Fitch said it assigned a AA rating to the RTD's $466.3 million sales tax revenue bonds (FasTracks project), series 2012A.

Proceeds will finance expansion of the district's transit system and pay issuance costs. The bonds are scheduled to sell via negotiation during the week of Dec. 12.

In addition, Fitch affirmed at AA-plus RTD's outstanding $215.4 million outstanding sales tax revenue bonds, $976.2 million outstanding sales tax revenue bonds (FasTracks Project), and $503.2 million outstanding certificates of participation.

The rating outlook on both sales tax revenue bonds is stable. The rating outlook on the COPs is revised to negative from stable.

The downgrade of the COPs reflects their growing exposure to projected thinning financial margins amidst RTD's aggressive expansion plan. As an operating expense of the base system, COPs base rental payments are paid after all other system debt service, which is increasing notably with the current offering.

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