Fitch: Florida Toll Facility Credit Quality Weathers Hurricanes Charley & Frances.

NEW YORK -- Toll facilities that Fitch rates in the State of Florida have largely weathered the negative effects of hurricanes Charley and Frances despite the extensive infrastructure damage inflicted elsewhere in the state. Fitch's ratings portfolio includes Alligator Alley Toll Road, Florida's Turnpike Enterprise, Miami-Dade County Expressway Authority, Mid-Bay Bridge Authority, Orlando-Orange County Expressway Authority, Santa Rosa Bay Bridge Authority, Sunshine Skyway Bridge, and Tampa-Hillsborough County Expressway Authority.

Revenue loss from lifted tolls and lower traffic volumes following the hurricanes will likely be the largest cost items. The effect of lower business activity and tourism in the short term will add to revenue loss. However, losses in total should be relatively small and manageable as tolls were lifted only for a few days and depressed traffic volumes in the near term may be offset by increased reconstruction activity. Property damage on these facilities, if any, has been minor and has been restricted to lower cost items like signs. Financial performance in the current fiscal year may be slightly dampened, but medium- to long-term negative effects should be minimal. Insurance recoveries and federal emergency assistance will be sought. The extent of recovery is unknown.

While the effect so far has been manageable, additional damage and revenue loss from subsequent hurricane activity cannot be ruled out. Insurance on the toll facilities cover property damage within specified limits, while business interruption insurance generally covers revenue loss resulting from a facility's physical damage. Since business interruption insurance typically does not cover the suspension of toll collection during evacuation and recovery efforts, the toll facilities would absorb this loss, or seek federal reimbursement.