Fitch Ratings assigns an 'A' rating to In a release on
Key Rating Drivers
Leading International Gateway Airport: MIA is a well-positioned, leading international gateway airport to serve the building
Residual Rate Setting: All of the airport's costs are adequately covered by the use agreement rate setting mechanisms. The current agreement extends until 2017. While airline costs have been relatively high, with the estimated cost per enplanement (CPE) of slightly above
Conservative Debt Structure: All of the airport's debt is fixed rate and amortizing with a mostly level debt service through final maturity in 2041. Debt Structure Risk: Stronger
High Leverage and Modest Coverage: Very high airport debt levels (approx.
Capital Program Completion: Nearly the entire
--Material losses or increased volatility in aviation activity considering the particular exposure to the operations of
--Operating costs that trend materially above current forecast parameters, leading to upward revisions to airline costs;
--Development of a new capital program that results in increased leverage metrics.
The bonds are secured by net revenues of the county's
The county intends to issue up to
MIA's enplanement activity continues to demonstrate growth with a positive change of 1.0 percent in fiscal 2013 to 19.9 million enplanements. The overall passenger traffic growth rates appear to be slowing from those seen several years ago although Fitch notes that the overall traffic resiliency reflects the relative strength of international traffic, particularly to Latin American markets that have close economic and cultural ties to the
Still, Fitch expects future traffic stability to remain an ongoing risk consideration given the high concentration of traffic from American's operations. American and its affiliate American Eagle collectively represents 68 percent of MIA's total passenger traffic and support a key part of the airport's domestic and international traffic operations. American's market share of total passenger traffic has remained mostly stable over the past several years. Even during the two year American bankruptcy period ending in late 2013, system-wide service capacity at the carrier has remained positive with international service expansion to Latin American markets being most beneficial for the airport. Fitch does not expect the recent American merger with
In addition to general economic conditions, both domestically as well as internationally across Latin American regions, MIA's base of service also faces ongoing competitive threats for its domestic O&D traffic from nearby Ft.
Taking into consideration the airport system's residual rate- setting methodology, financial operations have been largely stable over the past several years with coverage of debt service holding in the 1.45x to 1.55x range, taking into account
Fitch notes that the airport's current
Airport CPE was
Additional information is available at 'fitchratings.com'.
--'Rating Criteria for Infrastructure and Project Finance' (
--'Rating Criteria for Airports' (
Rating Criteria for Infrastructure and Project Finance
Rating Criteria for Airports
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Fitch Ratings assigns an 'A' rating to
In a release on