Posted on: Saturday, December 13, 2003

Rating on airport bonds unchanged

By Andrew Gomes
Advertiser Staff Writer

International credit-rating company Fitch Ratings left unchanged its "A" rating and "negative" outlook for about $785 million of state airport system revenue bonds.

The firm said declining revenue, rising expenses and unstable air-passenger travel posed a higher credit risk balanced by stable system finances, strong management and the state's monopoly position as the only commercial airport operator.

Fitch said that the state airport system maintains good cash reserves, decent debt levels, a solid strategy for retiring debt and prudent fiscal decision-making following the downturn in Asian tourism, Sept. 11, SARS and the war in Iraq.

The bonds, which mature in 2021, are secured by airport revenues and aviation fuel taxes.

In October 2001, Fitch downgraded the bonds to "negative" from "stable" because of the drop in air traffic from Japan and the state's decision to temporarily waive landing fees.

The "A" rating is five notches below Fitch's top "AAA" rating and five above a junk bond rating.