PROJECTS

Credit Risk Assessment for TIFIA Expressway Transactions

The problem

TIFIA, the largest federal lending agency in the United States, engaged Castalia to perform a credit risk assessment for TIFIA expressway transactions and appraise specific loans issued to state transportation agencies for the development of several expressways. These transactions were critical to financing large-scale infrastructure projects that improve connectivity and reduce congestion. Castalia has advised TIFIA on six expressway transactions since 2014 to date—the Monroe Connector (North Carolina), the 183N, 183A, and 193S sections of the Bergstrom Expressway (Texas), the 290E Manor Expressway (Texas), and the Wekiva Expressway (Florida).

How we helped

Castalia appraised $847 billion worth of loans made by TIFIA for innovative transportation projects across the United States. We provided in-depth reviews of project risks, appraising TIFIA’s financial model, and developed a lender’s base to accurately determine the credit risk for expressway transactions. This comprehensive approach ensured that risks were identified and mitigated early in the lending process. Castalia also supported TIFIA through procurement and negotiations for each expressway project, providing expert financial guidance and risk management strategies.

Impact

Each of the transactions successfully reached closure. Five of the expressways are currently under construction, with the 183A Bergstrom Expressway now fully operational. By providing detailed credit risk assessment for expressway transactions, Castalia enabled TIFIA to make informed lending decisions and support critical infrastructure development across multiple states.