S&P Global Ratings affirmed its 'BBB-' long-term rating on the Foothill-Eastern Transportation Corridor Agency, Calif.'s senior-lien toll road revenue bonds and its 'BB+' long-term rating on the agency's junior-lien toll road revenue bonds. The outlook is stable. The ratings reflect our view of the agency's: High debt levels and a debt service schedule that increases an average of 3.7% annually through 2038; Fluctuating operational performance, with traffic flat or decreasing from 2008 to 2013; however, transactions grew from 2014-2016, at rates ranging from 2.3%-8.5% per year; Uncertainty regarding the elasticity of tolls, and management's plans for small annual toll increases throughout the forecast period (although recent toll increases have increased revenue); and Adequate total coverage with potential additional debt needs
