Press Release|Public Finance
KBRA Assigns AA Rating with Stable Outlook for Dallas Fort Worth International Airport Joint Revenue Bonds
30 Jun 2023 | New York
KBRA assigns the long-term rating of AA with a Stable Outlook for the Dallas Fort Worth International Airport Joint Revenue Refunding Bonds Taxable Series 2023A, Joint Revenue Refunding and Improvement Bonds Series 2023B (Non-AMT), and Joint Revenue Refunding Bonds Series 2023C (AMT).
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- Strong management team has demonstrated an ability to effectively deal with the complexities of running a major U.S. airport.
- Growing population and economic base support origin and destination (O&D) traffic.
- Significant non-airline activity diversifies revenues and provides source of discretionary capital funding.
Credit Challenges
- High debt levels on per enplanement basis.
- High concentration of American Airlines as primary DFW carrier.
- Connecting traffic is a significant component of overall enplanement activity.
Rating Sensitivities
For Upgrade
- Ongoing population growth and strong local economic performance that results in O&D enplanement increases, and elevated rental car, parking, and concession revenues, as debt is amortized.
- Timely completion of planned capital projects, with lower than anticipated related airline costs.
For Downgrade
- While highly unlikely, the reduced importance of DFW as an American Airlines hub.
- Debt metrics increase to levels significantly more than what is currently forecast.
To access rating and relevant documents, click here.