The Rating Outlook on all bonds is Stable.
The authority also has
KEY RATING DRIVERS:
Revenue Risk-Volume: Stronger
Hybrid Airline Agreement: The airport has a hybrid use and lease agreement, which is residual on the airfield and compensatory in the terminal. The previous agreement expired in
Revenue Risk-Price: Midrange
Sizable Capital Plan Nearing Completion: The airport has completed the majority of its Green Build project which included a dual-level roadway at Terminal 2, expanded security, additional terminal apron parking, 10 new gates and a ticket lobby, and is in the midst of a concessions redevelopment program to expand shopping and dining, due for completion in spring 2014. The next major project will be a consolidated car rental facility for which the authority raised approximately
Sizable Fixed Rate Debt Profile: The airport currently has
Debt Structure: Stronger
Considerable Leverage, Strong Financial Profile: The airport's net debt-to-cash flow available for debt service (CFADS) of 12.97 times (x) is elevated relative to peers. Senior and aggregate coverage for FY2013 was strong at 30.83x and 3.77x respectively (the senior ratio reflects only a partial interest payment given that senior bonds were issued in 2013). However, both are expected to evolve down to lower levels as the recent debt is incorporated into airport costs. The airport maintains a healthy level of
--Lower enplanement growth leading to reduced PFC collections and lower concession spending may pressure revenues;
--Costs increasing above estimates related to the new facilities could tighten financial flexibility;
--Material changes in the financial profile in terms of leverage, coverage, or liquidity.
The bonds are special obligations of the authority, secured by and payable from a senior and a subordinate lien on the net revenues of the airport system and, under certain circumstances, investment earnings and certain other funds and accounts.
Enplanements increased by 1.9% to 8.7 million in FY 2013 and have shown continued improvement through the first five months of 2014, growing by an additional 1.7%. The airport's traffic base is 94% O&D and has benefited in the past year from continued economic recovery in the
The airport operates under a hybrid use and lease agreement that is residual on the airfield and compensatory in the terminal. Airlines also pay other fees and charges to cover costs relating to security, terminal apron parking and overnight charges. The current use and lease agreement will expire in
FY 2013 operating revenues were
Coverage levels have remained strong in recent years as management has worked to contain operating expense growth. Operating expenses in FY 2013 were
The airport is currently wrapping up its sizable Green Build capital investment program. Borrowing for the
The authority expects to construct a consolidated rental car facility at the airport. This
Additional information is available at 'www.fitchratings.com'.
--'Rating Criteria for Infrastructure and Project Finance' (
--'Rating Criteria for Airports' (
Rating Criteria for Infrastructure and Project Finance
Rating Criteria for Airports
Source: Fitch Ratings
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