On December 3rd, Fitch Ratings upgraded its ratings of RCTC’s 91 Express Lanes debt, signaling strong financial performance and prudent management of the toll lanes in Riverside County. The 91 Express Lanes not only met but exceeded baseline performance metrics, leading Fitch to upgrade the loan rating from ‘BBB ‘to ‘A.’ In addition to upgrading the bond rating, Fitch reaffirmed the Rating Outlook on the debt as “Stable,” reflecting strong demand for the 91 Express Lanes by customers who depend on reliable travel methods.

The 91 Express Lanes opened in Riverside County in 2017 and was financed partially through a $421 million federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, which provided funding for much needed transportation infrastructure improvements. The TIFIA loan was refinanced in 2021, saving taxpayers funds with a decreased interest payment.

In November 2023, RCTC opened the 15/91 Express Lanes Connector and is making strides on the 15 Express Lanes Project Southern Extension with the release of the Draft Environmental Document. Through the toll lanes system, RCTC is building a multimodal transportation system that will help drivers and transit buses with reliable travel options.

Fitch ratings is an American credit rating agency that is one of three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission.

Credit rating agencies KBRA and Fitch Ratings recently reaffirmed a series of debt ratings assigned to bonds issued by RCTC for both Sales Tax and Toll Enterprise operations. The announcements demonstrate continued strong financial performance and emphasize the trust RCTC has earned through excellent financial stewardship.

Fitch affirmed the ‘AA+’ rating of RCTC’s local sales tax revenue bonds one year after upgrading the rating from ‘AA’. Fitch credited revenue performance and strong growth prospects as key drivers of the rating.

KBRA also published its affirmation of the ‘BBB’ rating given to RCTC’s toll revenue bonds that helped fund the I-15 Express Lanes. Daily transactions, toll revenues, and operating expenses significantly outperformed KBRA’s original projections for the managed lanes.

Positive debt ratings save taxpayers money by lowering future borrowing costs for planned transportation projects. KBRA and Fitch Ratings are organizations which provide assessments about the creditworthiness of government agencies, corporations, and other entities.

The Point: Upgrade to Commission’s debt rating a result of I-15 Express Lanes exceeding performance metrics  

Fitch Ratings, the New York-based provider of credit ratings that provides assessments about the creditworthiness of government agencies, corporations, and other entities, recently announced an upgrade to RCTC’s debt rating associated with the funding of the I-15 Express Lanes. RCTC financed a portion of the project through a $152.2 million federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. The I-15 Express Lanes opened April 2021 and exceeded baseline performance metrics, prompting Fitch to upgrade the loan rating from ‘BBB-‘ to ‘BBB+’.

“The improved debt rating signals the trust and confidence earned through RCTC’s financial stewardship, and represents a long-standing commitment to transparency, disclosure, and excellence in financial reporting,” said RCTC Chair and City of Beaumont Councilmember Lloyd White.

Fitch announced the rating upgrade for the TIFIA loan at the end of December, while also affirming its rating (BBB+) and upgrading the debt outlook to positive for RCTC’s 91 toll revenue bonds – reflecting the strong traffic and revenue levels on the 91 Express Lanes.

In October, RCTC was also recognized with a Certificate of Achievement for Excellence in Financial Reporting – the 30th consecutive year the agency has been awarded with such an honor – capping off another strong year of financial performance and related reporting. The award is issued by the Government Finance Officers Association annually to state and local governments who exceed minimum financial reporting requirements.

The Point: Strong 91 Express Lanes Performance Leads to Upgrade of RCTC Debt Rating

Fitch Ratings announced Monday an upgrade to the Riverside County Transportation Commission’s debt related to construction of the 91 Express Lanes in Corona, due to strong performance of the lanes.

The rating improved to “BBB” from “BBB-” on RCTC’s 2013 Series A and Series B municipal bonds totaling $199 million and its Transportation Infrastructure Finance and Innovation Act loan of $461.9 million. The rating upgrade will help RCTC with future borrowing and improves the agency’s creditworthiness.

Customer use of the 91 Express Lanes has significantly outpaced projections since the opening of the lanes in March 2017. Fitch noted the customers took 14.5 million total trips in 2018 – the first full year of service – more than 50 percent higher than projected. Toll revenues in 2018 were $47.9 million, which also were substantially greater than forecasted.

RCTC also reported that an average of 300 new customers are opening accounts for the 91 Express Lanes each week, reflecting a demand for the managed lanes.

“RCTC maintains a steadfast commitment to being a responsible steward of Riverside County taxpayer dollars, said Chairman Chuck Washington. “The upgrade in ratings reflects a vote of confidence in RCTC’s financial stewardship and responsibility,” he said.