KBRA Affirms AA Rating for City of Salt Lake, UT Airport Revenue Bonds
9 Jul 2026 | New York
KBRA affirms the long-term rating of AA with a Stable Outlook for the City of Salt Lake, Utah's (the City) outstanding airport revenue bonds issued for Salt Lake City International Airport (the Airport).
The City’s Airport Revenue Bonds are limited obligations of the City, payable solely from and secured by a pledge of (1) Net Revenues of the Airport System, (2) certain funds and accounts held by the Trustee under the Master Indenture, and (3) other amounts payable under the Indenture. Net Revenues are defined as Revenues generated by operation of the Airport System less System Operations and Maintenance expenses.
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 capital improvement program implementation.
- Significant, sustained growth in origination & destination traffic.
For Downgrade:
- 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.
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