The long-term rating continues to reflect the trend of growing enplanement activity at Reno-Tahoe International Airport (RNO or “the Airport”) over the last decade, the healthy air trade area, and limited commercial air service competition. Also considered are the Airport’s sound financial performance characterized by increasing non-airline revenue generation, healthy liquidity and, historically low leverage prior to the commencement of the MoreRNO Program, a ten-year, $1.1 billion multi-phase capital program that began in 2022. Additionally contemplated in the rating are the execution and completion risks inherent in a capital program of MoreRNO’s magnitude, a significant portion of which will be debt financed, the Airport’s small enplanement base, moderate airline concentration in Southwest Airlines (39% of FY 2026 enplanements), and limited geographic reach outside of the western U.S.
Proceeds of the currently offered Airport Revenue Bonds (“the Bonds”) will be used…
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