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KBRA Affirms A+ Rating With Stable Outlook on Greater Asheville Regional Airport Authority, NC - GARBs

2 Apr 2026   |   New York

Contacts

KBRA affirms the long-term rating of A+ with a Stable Outlook on the Greater Asheville Regional Airport Authority's Airport System Revenue Bonds.

The Stable Outlook reflects KBRA’s expectation that the fundamental health of the MSA’s economic base will generate continued enplanement growth, resulting in an increase in net revenues pledged to support Terminal Modernization Project (TMP) related debt. Further, in KBRA’s view, liquidity continues to provide a buffer against exogenous industry shocks and various TMP execution risks. Manageable, post-TMP capital needs, none of which are expected to be debt funded, will allow the debt burden to moderate gradually.

Key Credit Considerations

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

Credit Positives

  • Growing air trade area, anchored by established leisure destinations, supports strong air travel demand.
  • Primary carrier, Allegiant, is incentivized to maintain services at the Airport given its established maintenance base.
  • Solid liquidity and, even after debt service ramps up starting in FY 2026, sufficient DSC.

Credit Challenges

  • Debt metrics are elevated relative to AVL’s size and operating scope.
  • Material increases in costs and lengthened construction schedule associated with the TMP.
  • Limited formal policies and procedures for financial and debt management, offset by experience of leadership.

Rating Sensitivities

For Upgrade

  • Improved debt metrics through amortization and growth in enplanements, operations, and liquidity.

For Downgrade

  • Material increase in the cost of the TMP resulting in issuance of additional debt and/or a failure to achieve revenue projections due to delays in completion of the TMP.
  • An unexpected, material, and sustained decline in passenger traffic at AVL created by the loss of an air carrier serving the Airport and/or an exogenous event.

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: 1014271