KBRA has assigned a long-term rating of A+ with a stable outlook to the City of Pensacola, Airport Revenue Bonds, Series 2025 (AMT).
Credit Positives
- Balanced leisure, business, and military service area mix generates robust O&D traffic.
- Growing service area economy bolsters outlook for increasing passenger activity.
- Substantial non-airline revenues provide a significant offset to airline rates and charges.
Credit Challenges
- Materially elevated debt service and operating costs following issuance of the Bonds.
- On-going vulnerability of the Airport’s small enplanement base to economic downturns and airline business decisions despite a balanced traffic mix.
S&P Global Ratings has also assigned its ‘A+’ long-term rating to Pensacola’s proposed $108.9 million series 2025 general airport revenue bonds (GARBs), issued for the Pensacola International Airport (PNS, or the airport).
Pensacola Mayor D.C. Reeves discussed the A+ ratings at his press conference this morning.
- “We got some great news last week, all three bond rating agencies, Standard & Poors, Fitch and KBRA released their credit ratings for the airport, and for the first time in the history of the airport, all three gave it an A+ bond rating,” said the mayor. “So, certainly huge congratulations to the airport, to the team. There’s a lot that goes into that. You have as high-rated and well-run on the financial side of the airport as you could have in the country.”
He explained what the bond rating means for city taxpayers. “It means you’re borrowing at a lower interest rate, and we’re able to get a project like a terminal done for less expensively because of that strong rating. And so that has an impact on the taxpayer and on the passengers that use our airport because, at the end of the day, all the expenses can help drive costs up.
- Background: Ten years ago, Fitch Ratings rated the Pensacola International Airport bonds BBB-.
The Pensacola International Airport (PNS) has launched TransformPNS.com, a website providing the latest updates, project details, and community engagement opportunities for the Airport’s Terminal Expansion and Modernization Program.