Fitch Ratings has upgraded the rating on the Richmond Metropolitan Authority, Va.'s approximately $94.8 million in outstanding expressway toll revenue bonds to A from A-minus.
The rating outlook is stable.
The upgrade reflects steady performance above Fitch's previous base case expectations and the lack of significant traffic growth needed going forward to service debt at a level consistent with peers currently rated A.
Fitch expects RMA will implement a modest toll increase around 2018 as debt service obligations reach maximum annual debt service (MADS) level. However, the authority would not require such an increase in order to meet capital and debt obligations over the next 10 years at debt service coverage ratios (DSCRs) that would remain consistent with an A category rating in Fitch's base case scenario.
