Standard & Poor's Ratings Services said it raised its long-term rating on the E-470 Public Highway Authority, Colo.'s outstanding senior-lien revenue bonds to BBB-plus from BBB.
Standard & Poor's also assigned its BBB-plus long-term rating to the authority's $40.1 million series 2015A senior revenue bonds. The outlook on all ratings is stable.
"The raised rating reflects improved debt service coverage (DSC)," said Standard & Poor's credit analyst Todd Spence, "and our view of recent growth in transactions which reached a new peak in 2014."
Other factors include high liquidity levels and a debt management plan that has reduced maximum annual debt service (MADS) to $136 million from approximately $160 million since 2004, with plans to reduce it further to $127 million. The authority still has an ascending debt structure that requires increases in traffic and toll rates to maintain financial margins.
