KBRA Upgrades Metro Nashville Airport Authority, TN Senior Lien Bonds to AA and Subordinate Lien Bonds to AA-; Assigns Series 2026ABCD Airport Improvement Revenue Bonds AA; Outlook Stable
22 Dec 2025 | New York
KBRA upgrades the long-term rating on Metropolitan Nashville Airport Authority's (MNAA) Senior Lien Airport Improvement Revenue Bonds to AA and the long-term rating on Subordinate Lien Airport Revenue Bonds to AA-. Concurrently, KBRA assigns a long-term rating of AA to MNAA's Series 2026A (non-AMT), 2026B (AMT), 2026C (non-AMT), and 2026D (AMT). The Outlook on all debt is Stable.
The rating upgrades reflect the strength of Nashville International Airport’s (BNA's or the "Airport's”), economically diverse and growing air trade area (ATA), which continues to drive increasing enplanements, predominantly origination and destination (O&D) oriented. The ATA has developed into a resilient, major tourist destination with a nationally recognized music industry, complementing its existing strengths in healthcare, higher education, and professional and business service sectors. Employment growth consistently exceeds State of Tennessee and national averages providing a stable, durable source of air service demand. These strengths combine to ensure the Airport’s costs per enplanement (CPE) remain low, providing the Authority headroom to implement a largely debt-financed capital improvement plan (CIP).
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Strong air service demand, supported by a growing population and expanding, vibrant economy with a large institutional presence (state capital, higher education and health care).
- Established trend of strong enplaned passenger growth.
- Well-maintained financial operations, characterized by abundant coverage and considerable liquidity.
- Strong management oversight and maintenance of the CIP, with initial projects completed substantially on-time and under budget.
Credit Challenges
- Large, growth-driven, multi-year capital plan with inherent construction, implementation and completion risks.
- Considerable rise in outstanding debt to support capex, increasing the fixed cost component of the financial structure and debt metrics.
The Stable Outlook reflects KBRA’s expectation that continued, highly effective management of the CIP, coupled with healthy passenger traffic generated by the Airport’s growing, economically vibrant ATA, will help to moderate the expected, future increase in CIP related debt. Financial margins, although reduced, should comfortably exceed legal requirements.
Rating Sensitivities
For Upgrade
- Significant progress in meeting capital program milestones within budget and with limited impact on debt and financial metrics.
For Downgrade
- Secular decline in enplaned passenger activity.
- Significant debt issuance beyond the scope of identified projects, that sharply increases debt metrics.
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