ORANGE – Fitch Ratings announced this week that it has upgraded the rating on the Orange County Transportation Authority’s 91 Express Lanes senior lien toll revenue bonds debt from A to A+.
In upgrading the bond to an A+ rating with a stable outlook, Fitch noted that the 91 Express Lanes has seen strong traffic and revenue growth, particularly since extending the 91 Express Lanes into Riverside County in 2017.
OCTA has demonstrated a solid history of operating performance, consistently generated strong revenues, and has positive long-term prospects for traffic growth, according to Fitch.
“The 91 Express Lanes, which have served drivers for more than 20 years now, continue to be a successful example of innovation in the transportation industry,” said OCTA Chairwoman and Fifth District County Supervisor Lisa Bartlett. “The thousands of people who use the express lanes know they are consistent and reliable and allow those drivers to spend less time in traffic and more time with their families. We are very pleased that Fitch Ratings has recognized this progress by upgrading our rating.”
The Orange County Transportation Authority (OCTA) Board of Directors approved the issuance of $124 million Senior Lien Toll Road Revenue Refunding Bonds (91 Express Lanes), Series 2013 four years ago. About $97.8 million in bonds remains outstanding.
The 91 Express Lanes is a four-lane toll road, with 10 miles in Orange County in the median of State Route 91, which is one of Southern California’s most heavily traveled freeways and a critical link between job centers in Orange County and housing in Riverside County.
An additional eight miles of the 91 Express Lanes, operated by the Riverside County Transportation Commission, opened in March 2017.
“This is a tremendous achievement for our County and a clear reflection of the strong fiscally responsible leadership of our Board and OCTA staff,” said Director Andrew Do, who is also the Orange County’s First District Supervisor and chairman of OCTA’s Finance Committee.
Director Do and Chairwoman Bartlett, along with Vice Chairman Tim Shaw and OCTA CEO Darrell Johnson, met directly with representatives of Fitch in New York earlier this year to discuss the successes of the 91 Express Lanes.
The 91 Express Lanes, which solely uses electronic tolling, was the first fully automated toll road in the world and the first in the United States to employ variable pricing. With two lanes in each direction, toll prices vary by hour, day of the week and direction of travel based on a pre-determined toll schedule that optimizes traffic throughput at free-flow speeds.
Since OCTA purchased the 91 Express Lanes in January 2003, the objective has been to maximize the number of cars traveling through the SR-91 corridor, rather than maximizing revenue. The A+ rating reflects strong inherent financial metrics as well as sound OCTA management.
