KBRA Assigns AA+ Rating, Stable Outlook to City of Atlanta, GA Airport General Revenue Bonds
2024年7月23日 - 1:58AM
ビジネスワイヤ(英語)
KBRA assigns a long-term rating of AA+, with a Stable Outlook to
the City of Atlanta, GA Airport General Revenue Bonds, Series
2024A-1 (Non-AMT) (Green Bonds), Series 2024A-2 (Non-AMT) and
Series 2024B (AMT). Concurrently, KBRA affirms the AA+, with a
Stable Outlook assigned to outstanding Airport General Revenue
Bonds and Passenger Facility Charge Subordinate Lien Airport
General Revenue Bonds.
General Revenue Bonds (GARBs) are secured by a pledge of net
General Revenues, while the Airport Passenger Facility Charge (PFC)
and Subordinate Lien Revenue Bonds (Hybrid PFC Bonds) are secured
by a senior lien on PFCs and a subordinate lien on net General
Revenues. KBRA makes no rating distinction between the GARBs and
Hybrid PFC Bonds given the strength of debt service coverage on
both liens and the subordinate pledge of airport net revenues
available to pay Hybrid PFC debt service, if needed. As of June 30,
2023, approximately $1.8 billion and $1.4 billion of GARBs and
Hybrid PFC Bonds, respectively, were outstanding.
Key Credit Considerations
Credit Positives:
- Expansive, vibrant and economically diverse air trade
area.
- Robust utilization, in part driven by an advantageous
geographic location that supports an airline hub.
- Healthy financial performance and debt service coverage, with
still considerable debt capacity.
Credit Challenges:
- Significant reliance on Delta and its regional partners.
- Continued high, though moderating, dependence on connecting
traffic.
- Various risks associated with implementing a large, multi-phase
capital plan.
The Stable Outlook reflects KBRA’s expectation that ATLNEXT will
continue to be prudently implemented, with operating performance,
debt service coverage and liquidity benefiting from continued
growth in passenger related revenues. KBRA believes that components
of ATLNEXT, which focus on replacing critical systems and
infrastructure, increasing capacity, and enhancing the customer
experience, serve to reinforce ATL’s profile as an essential hub
for Delta Air Lines and the U.S. air system more broadly.
Rating Sensitivities
For Upgrade:
- Completion of ATLNEXT projects on-time and on-budget, with
financial metrics exceeding forecast.
For Downgrade:
- While a remote prospect, the permanent loss in passenger
volumes leading to non-competitive airline costs, impaired
liquidity and materially weakened DSC.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. General Airport Revenue Bond Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005193
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Analytical Contacts
Douglas Kilcommons, Managing Director (Lead Analyst) +1
646-731-3341 douglas.kilcommons@kbra.com
Linda Vanderperre, Senior Director +1 646-731-2482
linda.vanderperre@kbra.com
Mallory Yu, Senior Analyst +1 646-731-1380
mallory.yu@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com