This elevated Airport Revenue Bond
rating reflects the economic strength and stability of Phoenix Sky Harbor International Airport, and the City's two smaller general aviation airports, Phoenix Deer Valley and Phoenix Goodyear," said Phoenix Mayor Phil Gordon.
In assigning the "A" rating to the city's first airport revenue bond
issue since 1972, Moody's cited the importance of the airport's stable origin and destination market, the diverse mix of air carriers serving the airport, strong gate control, and reasonable assumptions regarding projected future airport utilization.
In Moody's view the use of PFCs to enhance other airport debt -- for example by using projected PFC revenues to help secure a junior lien general airport revenue bond
-- would at best be a neutral credit factor.
Similar to other double-barreled (PFC and subordinate general airport revenue bond
) structures, the weaker pledge of subordinate net airport revenues securing the airport's subordinate lien airport revenue bonds
is mitigated by a pledge of PFC revenues, with the combined streams consistently yielding strong debt service coverage.
The series 2007 will be issued on parity with the airport's outstanding airport revenue bonds
, which are also affirmed at 'A-' rating with a Stable Outlook.
Chicago's O'Hare Airport is looking to use passenger facility charge revenue to help plug a funding shortfall in its expansion plan after airlines objected to issuing more general airport revenue bonds
, a city official said on Wednesday.
ACI-NA's figures in contrast take in AIP-eligible projects funded from other sources, including airport revenue bonds
and proceeds from the collection of Passenger Facility Charges (PFCs).
Although Fitch has not yet downgraded United airport bonds, the rating agency did place airport revenue bonds
issued for San Francisco International Airport on rating watch negative.
73 million first-lien airport revenue bonds
Fitch Ratings has affirmed the underlying 'A' rating on the State of Connecticut's general airport revenue bonds
requests redemption in full of Special Facilities Airport Revenue Bonds
, Series 1993 (TRAMCO, INC.
2bn outstanding subordinate lien airport revenue bonds