Press Release|Public Finance

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:

Credit Positives

  • 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.

Credit Challenges

  • 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.

Rating Sensitivities

For Upgrade

  • Significant progress toward a fixed-rate debt structure that lowers liquidity risk and credit facility renewal risk.
  • Materially improved debt metrics.

For Downgrade

  • 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.


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