Fitch Rates Illinois State Toll Highway Authority's $766MM Bonds 2008 Series A 'AAA/F1+'

NEW YORK & CHICAGO--Fitch Ratings assigns a rating of 'AAA/F1+' to the $766,200,000 The Illinois State Toll Highway Authority, toll highway variable rate senior refunding revenue bonds, 2008 series A consisting of $383,100,000 2008 series A-1 Bonds and $383,100,000 2008 series A-2 Bonds. The long-term 'AAA' rating assigned to the bonds is based on the support of a municipal bond insurance policy provided by Financial Security Assurance Inc., which insures scheduled payments of principal and interest on each sub-series of the bonds, effective as of the date of issuance of thereof. The insurance policy will extend to the maturity date of each sub-series of bonds, Jan. 1, 2031. The short-term 'F1+' rating is based on the liquidity support of a standby bond purchase agreement (SBPA) provided by Dexia Credit Local, acting through its New York Branch.

The SBPA provides for the payment of the purchase price of both subseries of tendered bonds during the weekly mode, and is sized to cover the principal portion of the purchase price and 34 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPA will expire on the scheduled termination date of Feb. 7, 2011, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPA. The short-term rating will expire upon any expiration or termination of the SBPA. The remarketing agent for the 2008 Series A-1 Bonds is Citigroup Global Markets Inc. and the remarketing agent for the 2008 Series A-2 Bonds is Lehman Brothers Inc. The bonds are expected to be delivered on or about Feb. 7, 2008.

The bonds initially bear interest in the weekly rate mode, but may be converted to an auction, term, flexible or fixed rate mode. While bonds bear interest in the weekly rate mode, interest is payable on the first business day of each month, commencing March 3, 2008. During the weekly rate mode, holders have the option to tender their bonds on any business day, following the required prior notice to the trustee's agent and the remarketing agent. The bonds are subject to mandatory tender: (1) during the weekly, flexible or term rate modes, (A) on a business day no later than the business day prior to the last day funds are available under the SBPA upon the trustee's receipt of notice of a default or event of default under the SBPA or a notice of termination of the SBPA, (B) on the business day prior to the stated termination date of the SBPA, (C) on the effective date of a substitute SBPA, (D) on the business day prior to date the SBPA is cancelled by the Authority, and (E) on the effective date of a substitute bond insurance policy, (2) during the flexible rate mode, on any rate change date; and (3) on each adjustment date. Optional and sinking fund redemption provisions also apply to the bonds pursuant to the terms of the authorizing documents. The sinking fund redemption, which is not mandatory, is made to subject to the availability of funds under the amended and restated trust indenture.

The proceeds of the bonds will be used to refund certain maturities of the Authority's Toll Highway Senior Priority Revenue Bonds, 2006 Series A.

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