...This criteria report provides an overview of Fitch Ratings' analytical approach to evaluating debt issued by DOTs and transit agencies that is secured by future federal transportation grants. These bonds are often referred to as grant anticipation revenue vehicles, or GARVEE bonds. Ratings on GARVEE debt consider a number of factors including the nature of the federal surface transportation program and features specific to each issuer, including structural features and financial flexibility. The rating levels discussed relate to Fitch's international rating scale and reflect stand-alone creditworthiness without considering external credit enhancement. They do not contemplate a policy choice to eliminate or significantly reduce the federal gas tax. Fitch's GARVEE bond ratings range from `AA' to `BBB'....
