The 'BBB-' ratings on the Foothill/Eastern Transportation Corridor Agency (F/ETCA), Calif.'s toll road revenue refunding bonds reflect the following credit concerns: High overall debt levels and a debt service schedule that increases an average of 6% annually and extends to 2040; Gradual funding of the debt service reserve (DSR) fund account, which will reach full funding at maximum annual debt service (MADS) of $279 million in fiscal 2007 (currently at $159 million and including the toll stabilization funds that were due to roll into the DSR on Jan. 15, 2002); and The likelihood of future additional debt to build new Foothill road segments (the Foothill-South project is currently in the environmental review process). Positive factors supporting the rating include: Toll
