Standard & Poor’s Ratings Services has revised the outlook on Pensacola International Airport revenue bonds to negative from stable.
S&P said the outlook revision “reflects our assessment of below-average liquidity and debt service coverage, a high debt burden, and fluctuating enplanement trends due to increased competition by nearby Northwest Florida Beaches International Airport.”
Upside of Florida is fast becoming downside.
City PIO forwarded an email by new airport head, Greg Donovan–whose previous job was at Northwest Florida airport. He pointed out that while downgrading the Pensacola’s airport’s outlook, S&P maintained the bonds’triple B rating.
S&P said the airport’s offsetting credit strengths include a good origin-destination market, relatively leveled debt service requirements and no additional debt needs.
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So the airport is in a good location, meeting debt service and doesn’t need more bonds.
However, S&P is concerned about its future.
Bond rating vs. Outlook….hmmmm.