Press Release|Public Finance
KBRA Assigns AA Rating to City of Salt Lake, UT Airport Revenue Bonds Series 2025A (AMT) and 2025B (Non-AMT); Affirms Rating for Parity Bonds
9 Jul 2025 | New York
KBRA assigns a long-term rating of AA with a Stable Outlook to the Salt Lake City, Utah Airport Revenue Bonds, Series 2025A (AMT) and Airport Revenue Bonds, Series 2025B (Non-AMT). KBRA additionally affirms the long-term rating of AA for the City's outstanding Airport Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating action reflects the following key credit considerations:
Credit Positives
- Experienced management team, with a demonstrated ability to implement a complex, multi-year capital program.
- Economically diverse and growing air trade area supporting robust demand for business and leisure travel.
- Second Amended Airport Use and Lease Agreement and passenger demand sustain the Airport’s sound financial performance with strong debt service coverage and robust liquidity.
Credit Challenges
- Significant reliance on Delta Air Lines for enplanement activity.
- Elevated near term debt metrics, which are expected to improve over time through anticipated enplanement growth and limited future borrowing needs.
Rating Sensitivities
For Upgrade:
- Accelerated reduction in leverage beyond forecasted levels, resulting in lower airline costs and higher coverage.
- Material increase in liquidity following New SLC implementation.
- Significant, sustained growth in origination & destination traffic.
For Downgrade
- While not expected, additional borrowing beyond what is currently contemplated to complete the New SLC.
- A sustained, material reduction in passenger traffic stemming from structural changes to Delta’s hubbing strategy, weakened regional economic performance, or an exogenic shock to the airline industry.
To access ratings and relevant documents, click here.