Central Texas Turnpike System Rating Raised to A-Minus by S&P

Standard & Poor's Ratings Services said it raised its long-term and underlying rating to A-minus from BBB-plus on the Central Texas Turnpike System's first-tier revenue bonds outstanding.

In addition, Standard & Poor's assigned its A-minus long-term rating to the system's approximately $687.2 million series 2012-A first-tier revenue refunding bonds and $151.1 million series 2012-B of first-tier revenue refunding put bonds. The outlook on all bonds is stable.

"The raised rating reflects our expectation that the system's planned toll increases will result in improved financial performance and yield higher coverage levels compared to the initial 2002 forecast," said Standard & Poor's credit analyst Todd Spence. "In our view, the accelerated toll increases demonstrates management's willingness to increase tolls as needed and the inclusion of additional tolled facilities to the system add additional financial strength to the system," Spence added.

The system, which was completed in April 2008, is located in and around Austin.

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