Fitch upgrades Illinois toll authority senior revenue bonds to AA

The following is a press release from Fitch Ratings: Fitch Ratings-Chicago-09 October 2026: Fitch Ratings has upgraded Illinois State Toll Highway Authority's (ISTHA) approximately $7.2 billion in outstanding senior revenue bonds to 'AA' from 'AA-'. The Rating Outlook is Stable. The upgrade reflects ISTHA's new capital program, including approved toll increases effective in 2027, which materially strengthen Fitch's projected financial metrics to levels consistent with a higher rating. The capital program funding mix has shifted to a predominantly pay-as-you-go model. This approach reduces incremental leverage and enhances financial flexibility. The rating reflects the essentiality of the tollway system, evidenced by its long-term traffic growth base and moderate price elasticity. The rating further reflects ISTHA's prudent debt management, with strong historical and projected debt service coverage ratios (DSCRs), while a major capital program is underway. The potential risks posed by ISTHA's sizable capital program are largely mitigated by its history of delivering a capital program on time and under budget, a very strong balance sheet position, and a proactive history of toll rate increases when needed. KEY RATING DRIVERS Revenue Risk - Volume - High Stronger Essential Road Network with Stable Demand The tollway system provides critical transportation links in the Chicago and northern Illinois metropolitan areas, including key connections to interstate highways. ISTHA has a history of consistent growth in both commercial and passenger vehicles, which demonstrates demand in the service market. Price elasticity has proven low for passenger traffic and lower for commercial vehicles. The network benefits from a passenger vehicle base comprised mostly of commuters. Revenue Risk - Price - Stronger Demonstrated Rate-Making Flexibility ISTHA has full legal authority to adjust toll rates at its discretion without limitation. The authority has approved a toll schedule to support its capital program, including sizeable increases for passenger vehicles and more moderate increases for commercial vehicles, followed by periodic inflation-based adjustments. The authority has a multidecade history of implementing significant rate increases to sustain a strong financial profile and limit borrowing needs. Infrastructure Dev. & Renewal - Stronger Large Capital Plan Partially Debt Funded ISTHA's system requires ongoing, significant capital investment to preserve asset condition, as reflected in its large-scale capital programs. The new program, Driving Connections, is expected to be funded primarily through operating cash flow and, to a lesser extent, new-money debt, which represents a reduced reliance on borrowing. Recent and planned toll increases support the program's funding needs. The authority has a strong record of delivering major capital projects on time and under budget. Debt Structure - 1 - Stronger Conservative Debt Profile All debt is on