While the rate covenant
provides a clear framework for increasing CFCs and imposing contingent rent, competitive pressures affecting the MIA travel market limit economic rate-raising ability.
0 times (x) maximum annual debt service (MADS) rate covenant
and historical additional bonds test, are also rating factors.
Additional TIFIA loan draws are allowed once the concession agreement with the participating rental car companies (PRCC) has been modified so that it conforms to the loan documents' rate covenant
There is no rate covenant
while the general fund is pledged.
It is therefore Fitch's opinion that rate increases going forward, at a minimum, will likely be ordered as needed to meet the rate covenant
41 times (x) of gross debt service, marking the second such year that net revenues were sufficient to make the rate covenant
Legal provisions are strong; the rate covenant
25x rate covenant
for net revenues excluding connection charges, part of the system's two-prong rate covenant
The residual nature of the airport's use and lease agreement historically provided debt service coverage well in excess of the rate covenant
Additional security for bond holders is provided by the city's rate covenant
, which requires maintenance of rates, fees and other charges adequate to pay at least 100% of annual debt service on all outstanding senior lien bonds as well as any subordinated indebtedness, including the utility improvement assessment bonds (Southeast 1 Area), series 2006.
Investors may welcome the greater certainty of a collateral loss profile that a weighted average recovery rate covenant
would provide, especially as many CLO issuers expand into second-lien and mezzanine loans that have much less certain recovery expectations," said Zaydman.
Fitch expects debt service coverage to remain at or above the authority's rate covenant
given moderate traffic growth expectations generally in the mid to high single digits through the medium term, programmed toll increases within inflationary levels and continued careful expense management.