Press Release|Public Finance
KBRA Assigns AA Rating to Hillsborough County Aviation Authority, FL Tampa International Airport Revenue Bonds, 2024 Series B (AMT); Affirms Related Ratings
30 Jul 2024 | New York
KBRA assigns a long-term rating of AA to the Hillsborough County Aviation Authority, FL Tampa International Airport Revenue Bonds, 2024 Series B (AMT). KBRA additionally affirms the long-term ratings of AA for the Authority's outstanding Tampa International Airport Revenue Bonds and the long-term rating of AA- for the Authority's outstanding Tampa International Airport Subordinated Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Broad and growing air trade area economy and healthy population growth support increasing demand for air travel, while the strictly O&D nature of airport activity confers stability.
- Diverse carrier mix with existing airlines continuing to strategically add new domestic and international routes, which is supportive of continued enplanement growth.
- Airline costs are competitive.
Credit Challenges
- Multi-phase CIP entails significant additional borrowing.
- Somewhat less operational certainty created by a rates by resolution framework, though TPA’s strong post-pandemic recovery, diverse carrier mix, and economically robust air trade area serve as mitigating factors.
Rating Sensitivities
For Upgrade
- Completion of capital program on time and within budget accompanied by a continuation of the strong trend in passenger enplanements observed in the several years preceding the pandemic.
For Downgrade
- Cost overruns or delays associated with the large capital improvement program.
- Trend of weakened liquidity levels and/or debt metrics.
To access rating and relevant documents, click here.