The 'BBB-' ratings on the Foothill/Eastern Transportation Corridor Agency (F/ETCA), Calif.'s toll road revenue refunding bonds reflect the following credit concerns: Inherent risks associated with a relatively new tolled facility--especially with the critical fiscal 2000-2003 time period--and longer term toll-free competition and projected annual transaction growth of 3.3%; High overall debt levels and a debt service schedule that increases an average of 6% annually and extends to 2040; A requirement to increase toll revenues an average of 5.5% annually, an amount that could be pressured under a scenario of continued subdued inflation or an economic downturn; Gradual funding of the debt service reserve (DSR) fund account, which will reach full funding at maximum annual debt service of $279 million in
