Press Release|Public Finance

KBRA Affirms AA- Rating with Stable Outlook for the City of Houston, TX Airport System Subordinate Lien Revenue Bonds

23 May 2024   |   New York


KBRA affirms the long-term rating of AA- with a Stable Outlook to the City of Houston, TX Airport System Subordinate Lien Revenue Bonds.

Key Credit Considerations

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

Credit Positives

  • Large and growing catchment area and strategic mid-continent location support origin and destination (O&D) and connecting activity.
  • Finanacial operations are characterized by abundant liquidity and ample debt service coverage margins.
  • Carrier yields are well above United and Southwest respective system averages.

Credit Challenges

  • High concentration of United Airlines and Southwest Airlines as primary carriers at Intercontinental and Hobby, respectively.
  • Non-airline revenues on a per enplanement basis are low.

Rating Sensitivities

For Upgrade

  • Sharp increase in passenger activity, while maintaining current liquidity levels and improving debt metrics

For Downgrade

  • Reduction/elimination of hubbing operations by United Airlines

To access rating and relevant documents, click here.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004436

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