Move attributed to Texas Transportation Commission leadership and sound management practices
AUSTIN – The Texas Department of Transportation today announced that bond ratings outstanding on the Central Texas Turnpike System (CTTS) were raised to A- from BBB+. The move was made by Standard & Poor’s Rating Services. S&P says they raised their rating because previously announced toll rates on the CTTS (SH 45N, SH 45SE, Loop 1, and segments 1-4 of SH 130) are expected to improve financial performance of the system. Furthermore demographic and traffic trends which have demonstrated strong growth are expected to continue.
As a result of the more favorable rating and expected strong performance of the system, TxDOT can borrow money at a lower rate, and have the ability to direct additional revenues toward other priority transportation projects within the region.
“This bond rating increase is a true win for Texans who value the central Texas roadway system and want similar projects to be successful around the state,” said Ted Houghton, Chairman of the Texas Transportation Commission. “The move also reflects the strong leadership of TxDOT and the operational excellence the agency is demonstrating to manage its assets and be responsive to Texas taxpayers.”
“TxDOT is being run in a business-like fashion and this rating demonstrates the discipline and rigor we are exercising every day,” said Phil Wilson, TxDOT Executive Director. “We’re executing with the tools and flexibility the Legislature has given us to move forward with priority projects for Texans.”
Fitch and Moody’s affirmed their ratings on the bonds at BBB+ and Baa1, respectively.
The Texas Department of Transportation is responsible for maintaining 80,000 miles of road and for supporting aviation, rail, and public transportation across the state. TxDOT and its 11,000 employees are committed to working with others to provide safe and reliable transportation solutions for Texas by maintaining a safe system, addressing congestion, connecting Texas communities, and being a Best in Class state agency. Find out more at TxDOT.gov. Fan us on Facebook, and follow us on Twitter.