Florida Turnpike Enterprise's Pro Forma Series 2019A Turnpike Revenue Refunding Bonds Rated 'AA'; Outlook Is Stable

NEW YORK (S&P Global Ratings) Jan. 4, 2019--S&P Global Ratings has assigned 
its 'AA' long-term rating to Florida's pro forma $224.17 million series 2019A 
turnpike revenue refunding bonds, issued for the Florida Turnpike Enterprise 
(FTE or the turnpike). The outlook is stable. 

The series 2019A bond proceeds will refund series 2009B Build America Bonds 
(Federally Taxable-Issuer Subsidy) outstanding, fund a reserve account, if 
necessary, and pay issuance costs. The refunding is for debt service savings 
without extending maturities.

"The rating reflects our assessment of the combination of the turnpike's very 
strong enterprise risk profile and very strong financial risk profile," said 
S&P Global Ratings credit analyst Joseph Pezzimenti. "The rating also reflects 
our opinion that the FTE serves one of the most-populous states that expects 
to have above-average population growth that we believe will support generally 
favorable traffic trends and financial performance," added Mr. Pezzimenti.

Our enterprise risk profile assessment incorporates the FTE's favorable 
traffic trends due to its important role, strategic location, and lack of 
significant competition from toll-free roads. Our financial risk profile 
assessment considers the FTE's good revenue growth from periodic toll rate 
increases and favorable traffic trends that we expect will continue. This will 
allow the turnpike to maintain strong financial performance and an extremely 
strong capacity to manage rising debt levels from debt financing its rolling, 
multi-billion-dollar capital improvement program. 

The large and diverse system serves 17 of Florida's 67 counties, representing 
more than 60% of the state's population. Large portions of the system function 
as a congestion reliever.

The stable outlook reflects our opinion that the FTE will maintain total debt 
service coverage (DSC; S&P Global Ratings-calculated) at levels we consider 
strong and its financial capacity to manage its rising debt burden will not 

We do not expect to raise the rating during the next two years, due to the 
FTE's sizable additional debt plans and our opinion that its market position 
will not change.

We could lower the rating in the next two years, if we believe transaction and 
revenue growth are materially lower than forecast, leading to weaker total DSC 
and debt capacity. 
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