Press Release|Public Finance

KBRA Assigns A+ Rating to Allegheny County Airport Authority, PA (Pittsburgh International Airport) Airport Revenue Bonds; Outlook is Stable

21 Sep 2023   |   New York


KBRA assigns an A+ rating with a Stable Outlook to the Allegheny County Airport Authority's (ACAA's) Airport Revenue Bonds, Series 2023A (AMT), Series 2023B (Non-AMT) and Series 2023C (Federally Taxable). Concurrently, KBRA affirms the long-term rating of A+ with a Stable Outlook on ACAA's outstanding Airport Revenue Bonds. The rating assignment reflects the steady post-pandemic recovery in passenger traffic, revenue and destinations served at Pittsburgh International Airport (“PIT”, or “the Airport”). Further underpinning the rating is ACAA’s broad mix of aeronautical, non-aeronautical and non-operating revenues, which contributes to stable operating performance and airline affordability, facilitating efforts to attract new airlines and routes to PIT. The assignment further considers projected debt and leverage metrics, which are expected to be stressed throughout the forecast period, as well as the potential volatility of certain revenues that may be deemed “Other Pledged Revenues under the Master Trust Indenture (“MTI”).

Key Credit Considerations

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

Credit Positives

  • Proactive leadership team focused on maintaining competitive airline costs through revenue diversification, innovative pricing structures, operating efficiencies and expense controls.
  • Absence of airline concentration, unique non-aviation revenue sources which can be applied on a discretionary basis, and the origin and destination nature of Airport activity aid in stability.
  • The diversified regional economy benefits from a young, well-educated workforce, low unemployment, and growth in strategic employment sectors. A lack of population growth somewhat offsets these positive demographics.
  • The risk of construction cost escalation or project delays that entail significant cost overruns has been largely mitigated.

Credit Challenges

  • Projected leverage is high and debt metrics are expected to be stressed throughout the forecast period.
  • Certain revenues that may be deemed “Other Pledged Revenues” under the Master Trust Indenture are volatile.

Rating Sensitivities

For Upgrade

  • Recognition of anticipated operating cost savings and maintenance of manageable airline costs.
  • Full recovery in enplanements and subsequent sustained growth that results in sound coverage margins (taking into consideration the residual nature of rates), and moderate airline costs.

For Downgrade

  • A lack of attainment of projected operating cost reductions, airline costs, or enplanement levels upon completion and operation of the TMP and ARP projects.
  • A pause or reversal in enplanement recovery, triggering significant increases in airline costs.

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: 1002367

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.