Fitch Ratings Downgrades Dulles Greenway Toll Road Revenue Bonds

Fitch Ratings downgrades to 'BBB-' from 'BBB' the Toll Road Investors Partnership II, L.P. (TRIP II) Dulles Greenway Project revenue bonds, consisting of: $34.9 million current interest bonds, series 1999A; $493.8 million zero coupon bonds, series 1999 B; $158.8 million senior callable zero coupon bonds, series 2005 A; $70.5 million senior callable zero coupon bonds, series 2005 B; and $227.6 million senior zero coupon bonds, series 2005 C. The Rating Outlook is Stable. The bonds are secured by a pledge of net toll revenue.

The downgrade reflects the effects of improvements along alternative free routes and the impact of the economic recession in the Loudoun County service area, which have resulted in a continued decline in traffic on the Greenway since fiscal 2006.

Including the drop in interest earnings, net revenue declined by 6.2% between 2006 and 2009 while annual debt service obligations grew by 15.5%. As debt service grows at a compound annual growth rate of 3.6% between fiscal 2010 and 2034, the Greenway is dependent upon consistent levels of growth that may be more difficult to achieve. In addition, there is some potential for additional loss in traffic and pricing power when the Dulles Metrorail project opens later in the decade.

The Dulles Greenway is a 14-mile commuter toll road, which extends from the Dulles Toll Road and the Dulles International Airport to Leesburg, Vs. TRIP II is a Virginia Limited Partnership, formed in 1993 for the purpose of developing, constructing and operating the Dulles Greenway toll road project. The toll road has been in operations since September 1995.

Read the complete press release for more details on the downgrade by Fitch.

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