Central Florida Expressway Authority Receives A2 Rating and Saves Millions on Bond Refunding

Central Florida Expressway Authority Receives A2 Rating and Saves Millions on Bond Refunding

At its April 14th, 2016 Board meeting, the Central Florida Expressway Authority (CFX) reported the successful sale of $151.7 million Senior Lien Refunding Revenue Bonds. The bonds were sold via competitive sale on March 29, 2016 to take advantage of favorable market rates. The 2016A Bond issue resulted in an interest rate of 3.3%. This generated a net present value in debt service savings of $27.2 million or 17.5%.

The successful sale followed an announcement by Standard & Poors upgrading CFX’s ratings outlook from stable to positive. S&P also affirmed the agency’s “A” long-term rating. “The positive outlook reflects traffic and revenue performance that has exceeded previous forecasts, resulting in a revised financial forecast that shows increased debt service coverage to levels we view as strong,” said S&P credit analyst Todd Spence.

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