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KBRA Assigns AA Rating, Stable Outlook to Jacksonville Aviation Authority Revenue Bonds Series 2026 (AMT)

22 Apr 2026   |   New York

Contacts

KBRA assigns a long-term rating of AA with a Stable Outlook to the Jacksonville Aviation Authority Revenue Bonds Series 2026 (AMT).

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

  • Very strong financial profile, with exceptionally high historical debt service coverage and outstanding liquidity.
  • Large and growing O&D service area, supported by diversified business, military, and tourism demand that underpins stable passenger traffic and airline service.
  • Manageable capital program, with the 2026 Project well advanced and largely de-risked from a construction standpoint, substantial use of grants and PFCs, and no additional parity debt expected for the remaining five-year CIP.

Credit Challenges

  • Traffic concentration and volatility risk related to service changes, particularly given concentration of top two carriers and the variable market behavior of some lower-cost airlines.
  • Reliance on future PFC revenues, including timely approval and implementation of Applications 13 and 14, to fund portions of the 2026 Project and support projected debt service levels.
  • AULA renewal risk, as the current airline agreement expires within the forecast period.

Rating Sensitivities

For Upgrade

  • Improved debt service coverage consistently above required minimums and above forecast period projections.
  • Exceptionally strong non-airline revenue generation post 2026 Project completion, such that airline costs fall well below projections.

For Downgrade

  • Failure to implement the 2026 Project and the Five-Year CIP on time and within budget, resulting in financial stress.
  • An unexpected, sustained decline in passenger enplanements that pressures operating performance, liquidity, debt metrics and/or airline costs.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014558