The airport has approximately
KEY RATING DRIVERS:
COMPETITIVE AIR SERVICE AREA: The airport's traffic base is over 90% origination and destination but is exposed to competition from nearby
LOW TO MODERATE PRICING POWER: The airport's hybrid use and lease agreement allows for adequate cost recovery. However, the airport is reliant on the solid performance of volume sensitive parking, PFC, and CFC revenue to keep airline costs reasonable. The airport is utilizing unspent bond proceeds to pay a portion of debt service to keep the cost per enplanement (CPE) at
MODERATE DEBT STRUCTURE: The airport has very limited financial market exposure, with
LIMITED NEAR-TERM INFRASTRUCTURE RENEWAL:
DECLINING COVERAGE, ELEVATED LEVERAGE, LIMITED OPERATING FLEXIBILITY:
--Significant Traffic Declines: Severe air traffic declines of 10% or more could lead to a downgrade;
--Additional Leverage: Although not currently anticipated, any additional leverage without commensurate air traffic growth could lead to a downgrade;
--Bank Note: Any change in the senior underlying rating of the airport would affect the subordinated bank note rating.
To the extent term loan bank notes were to be issued, such notes would be secured by surplus revenues held in the subordinated debt account of the surplus revenue funds, established in the master trust agreement. The senior airport bonds are secured by a first lien of net revenue of the airport, including operating grants, facility rents, and CFC collections on rental car transactions. The commercial paper notes are secured by a lien and pledge of advances pursuant to the letter of credit facility, proceeds of the sale of notes, and surplus revenues subordinate in lien to the senior bonds.
The commercial paper notes series A-1, A-2, B, and C have an authorized maximum
Fiscal 2013 enplanements at the airport increased 2.7% to 4.2 million. Through the first 7 months of fiscal 2014, enplanements have improved a further 6.9%.
For more information, please see Fitch's press release 'Fitch Affirms
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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