Fitch Affirms 'A' Rating for East End Crossing Partners LLC’s Series 2021 Bonds; Outlook Stable
Published: July 18, 2025 | Fitch Ratings – New York
Fitch Ratings has affirmed the 'A' rating on approximately $527.6 million of Series 2021 private activity refunding bonds issued by the Indiana Finance Authority (IFA) on behalf of East End Crossing Partners, LLC (EECP) for the Ohio River Bridges – East End Crossing project. The Rating Outlook remains Stable.
Rating Overview
The affirmation reflects EECP's strong operating performance, demonstrated through a long and stable history. The project maintains robust financial metrics, though it does face heightened operational complexity due to the presence of a bridge. Operating and maintenance (O&M) costs have been well-managed, coming in significantly below original projections, thanks in part to self-performed services by EECP.
The project benefits from availability payments (APs) backed by the highly rated Indiana Finance Authority (rated 'AA'/Stable) and has seen minimal deduction exposure to date. These factors collectively underpin the 'A' rating.
Key Credit Drivers
Cost Risk – Stronger
- Limited Scope, Predictable Costs: The project has consistently operated below budget, supporting long-term cost predictability.
- Operational Complexity: The inclusion of a bridge adds complexity and potential cost volatility. However, EECP self-performs O&M, mitigating structural risk.
- Risk Mitigation: Strong structural protections include rehabilitation reserves and handback requirement accounts, though EECP remains responsible for cost overruns.
Fitch View:
- Scope Risk: Stronger
- Cost Predictability: Stronger
- Structural Protections: Midrange
Revenue Risk – Stronger
- Reliable Grantor Payments: EECP receives regular availability payments from IFA, a financially sound public counterparty.
- Minimal Deduction History: While self-performance of lifecycle tasks presents some risk, the project has a strong operational track record with few deductions.
Debt Structure – Midrange
- Back-Loaded, Fixed-Rate Debt: The structure includes interest-only payments through 2031 and escalates moderately over time.
- Risk Protections: Features such as a six-month Debt Service Reserve Account (DSRA) and equity lock-up triggers are in place. Lifecycle reserves are sized to a three-year outlook.
Financial Profile
The average Debt Service Coverage Ratio (DSCR) over the debt term is 1.7x in both Fitch’s base and rating cases, boosted by the interest-only period until 2031.
Post-2032, DSCR levels remain steady at approximately 1.4x as principal payments begin.
Fitch’s rating case includes a 5% realistic outside cost (ROC) stress, aligned with guidance for stronger projects.
The project has a robust all-cost breakeven coverage of 121% (or 84% excluding the DSRA) at financial close, resulting in a strong ROC multiple of over 24x.
Peer Comparison
Fitch compares EECP to NYNJ Link LLC (rated A-/Stable), another road-and-bridge AP project.
While NYNJ Link boasts a higher ROC multiple (36x), EECP has a stronger average DSCR (1.7x vs. lower for NYNJ), justifying its higher 'A' rating.
Rating Sensitivities
Potential Negative Rating Actions:
- Sustained cost increases or payment deductions reducing DSCR below 1.25x, or a ROC multiple below 8x–9x.
Potential Positive Rating Actions:
- Unlikely in the near term due to the project’s high operational complexity and uncertain long-term lifecycle costs.
Security Details
The Series 2021 bonds are secured by EECP’s interest in:
- Project revenues
- The public-private agreement
- All associated contracts and project accounts
ESG Considerations
Fitch has assessed ESG factors with a relevance score of ‘3’, indicating that environmental, social, and governance issues are neutral to minimally impactful on the rating.
For details, visit: Fitch ESG Relevance Scores
RATING ACTIONS: No change; rating affirmed at ‘A’; Outlook Stable.
🔗 Source: Fitch Ratings – Official Website
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