Fitch assigns AA- to Dallas Area Rapid Transit bonds

Fitch Ratings said it assigned an AA- rating to the Dallas Area Rapid Transit's approximately $739.495 million senior-lien sales tax revenue bonds, series 2008.

The bonds are expected to sell on June 12.

Proceeds will be used to refund the outstanding senior subordinate-lien series 2001 commercial paper notes, to refund portions of DART's outstanding series 2001 and 2002 senior-lien revenue bonds, series 2007 revenue refunding bonds, and to finance the improvement or extension of DART's public transportation system.

Fitch also downgraded to AA- from AA the rating on the $906.7 million of outstanding senior-lien sales tax revenue bonds and has affirmed the implied AA- rating on DART's senior subordinate-lien sales tax revenue commercial paper notes. The outlook is stable.

The downgrade on the senior-lien bonds reflects the increased costs associated with DART's light rail build out, potential cost increases to the remaining projects through 2018, the need to issue an additional $529 million in debt beyond the $2.9 billion voter-authorized limit, and a move to debt with a 40-year maturity, all of which indicate more limited financial flexibility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.