Press Release|Public Finance
KBRA Assigns AA- Rating to Clark County, NV's Airport System Subordinate Lien Refunding Revenue Bonds Series 2024A (Non-AMT), and A+ Rating to Airport System Junior Subordinate Lien Revenue Notes Series 2024B (Non-AMT)
28 Feb 2024 | New York
KBRA assigns long-term ratings, each with a Stable Outlook, for the following Clark County, NV obligations:
- AA- to the Clark County, Nevada Airport System Subordinate Lien Refunding Revenue Bonds Series 2024A (Non-AMT)
- A+ to the Clark County, Nevada Airport System Junior Subordinate Lien Revenue Notes Series 2024B (Non-AMT)
Concurrently, KBRA affirms the long-term ratings, each with a Stable Outlook, on the following Clark County, NV Bonds and Notes:
- AA- for Second Lien GARBS (Reid-Las Vegas)
- AA- for PFCs and Second Lien GARBS (Reid-Las Vegas)
- A+ for Third Lien Notes and Jet A Bonds (Reid-Las Vegas)
Key Credit Considerations
The rating was assigned 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 downturn 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.