NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA assigns the long-term rating of AA with a Stable Outlook for the Dallas Fort Worth International Airport Joint Revenue Refunding Bonds Taxable Series 2023A, Joint Revenue Refunding and Improvement Bonds Series 2023B (Non-AMT), and Joint Revenue Refunding Bonds Series 2023C (AMT).
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
- Strong management team has demonstrated an ability to effectively deal with the complexities of running a major U.S. airport.
- Growing population and economic base support origin and destination (O&D) traffic.
- Significant non-airline activity diversifies revenues and provides source of discretionary capital funding.
- High debt levels on per enplanement basis.
- High concentration of American Airlines as primary DFW carrier.
- Connecting traffic is a significant component of overall enplanement activity.
- Ongoing population growth and strong local economic performance that results in O&D enplanement increases, and elevated rental car, parking, and concession revenues, as debt is amortized.
- Timely completion of planned capital projects, with lower than anticipated related airline costs.
- While highly unlikely, the reduced importance of DFW as an American Airlines hub.
- Debt metrics increase to levels significantly more than what is currently forecast.
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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.
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