KBRA Affirms AA Rating, Stable Outlook for the Cities of Dallas and Fort Worth, TX Airport Joint Revenue and Improvement Bonds
26 Aug 2026 | New York
KBRA affirms the long-term rating of AA on Joint Revenue and Improvement Bonds ("GARBS") issued by the Cities of Dallas and Fort Worth on behalf of Dallas-Fort Worth International Airport (“DFW” or the “Airport”). The Outlook is Stable.
The long-term rating is supported by disciplined financial management, the rapid growth of the Airport’s diversified service area, enduring locational advantages that foster hub operations and high utilization, and an expansive physical footprint that both meets future capacity needs and drives solid non-airline revenue growth. Partially offsetting these strengths are the attendant risks of DFW’s large, multi-phase capital plan, which includes significant additional borrowing.
Joint Airport Revenue and Improvement Bonds (“GARBs”) issued by the Cities of Dallas and Fort Worth on behalf of Dallas-Fort Worth International Airport (“DFW” or the “Airport”), are payable from and secured by an irrevocable first lien on and pledge of Airport gross revenues. Although not included as gross revenues, certain passenger facility charges and certain payments made by the Public Facility Improvement Corporation (“PFIC ”) are available to pay debt service on GARBs and parity obligations, if necessary. A debt service reserve is fully cash funded, in an amount equal to average annual debt service.
The Stable Outlook reflects KBRA’s expectation that growth in airline and non-airline activity will remain consistent with revised projections. Despite increasing leverage associated with the Airport’s extensive CIP, the added gate capacity and efficiencies should reinforce DFW’s critical role in American Airlines’ hub network and support maintenance of debt-service coverage metrics above Ordinance requirements.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Sizable and growing regional population and employment base, facility and capacity advantages, and central geographical location contribute to DFW’s status as a fortress hub and sustain its competitive position.
- Experienced leadership team demonstrates strong financial and operational management, and is effectively executing the ambitious, recently expanded Capital Improvement Plan.
- Significant non-airline activity diversifies Airport revenues, provides for discretionary capital funding, and is expected to help to keep airline costs competitive despite increases in operating and capital expenditures through FY 2030.
Credit Challenges
- Further increases in debt per enplanement ratios are anticipated as over $8.0 billion in additional debt is issued through FY 2030.
- Exposure to cost escalation exists within the expanded Terminal F budget.
- While American Airlines’ DFW hub commitment underpins demand, the Airport’s high exposure to a single carrier’s strategy presents material event risk.
Rating Sensitivities
For Upgrade
- Ongoing population growth and strong local economic performance that drives O&D enplanements and non-airline revenues as debt is amortized.
- Timely completion of planned capital projects, with lower than anticipated related airline costs.
For Downgrade
- Prolonged lack of enplanement growth due to waning passenger demand and/or reduced airline capacity that leaves DFW overcapitalized relative to its needs for a time.
- While highly unlikely, a sharp or sustained reduction in American’s daily connection banks at DFW and/ or a diminishment in the importance of DFW as an American Airlines fortress hub.
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