KBRA Affirms Ratings for Various Clark County, NV (Las Vegas-Harry Reid International Airport) Airport System Revenue Bonds; Outlook is Stable
1 Nov 2023 | New York
KBRA affirms the long-term ratings, each with a Stable Outlook, on the following obligations of Clark County, Nevada:
- AA- for the Second Lien GARBs (Reid-Las Vegas)
- AA- for the PFCs and Second Lien GARBs (Reid-Las Vegas)
- A+ for the Third Lien Notes and Jet A Bonds (Reid-Las Vegas)
Key Credit Considerations
The ratings were affirmed because of the following key credit considerations:
- Large, mainly O&D passenger base with limited competition and a diverse carrier mix
- Strong liquidity and satisfactory debt service coverage margins, given the residual Use and Lease Agreement.
- Declining annual debt service requirements and an absence of expected borrowing in CIP.
- Leisure and hospitality base could be vulnerable in a severe economic downtown and competitive pressures.
- Significant variable rate debt / interest rate swaps require ongoing monitoring and have associated risks.
- Significant progress toward a fixed-rate debt structure that lowers liquidity risk and credit facility renewal risk.
- Materially improved debt metrics.
- Material reduction in debt service coverage and/or liquidity.
- Sustained enplanement decline due to diminished air trade area relevance as leisure/conference destination.
To access rating and relevant documents, click here.