Press Release|Public Finance
KBRA Affirms AA Rating for City of Salt Lake, UT Airport Revenue Bonds
28 Jun 2024 | New York
KBRA affirms the long-term rating of AA with a Stable Outlook for the City of Salt Lake, UT Airport Revenue Bonds.
Key Credit Considerations
The rating action reflects the following key credit considerations:
Credit Positives
- Experienced management team, with a demonstrated ability to implement a complex, multi-year capital program.
- Economically diverse air trade area supporting robust business and leisure travel demand.
- Continued manageable airline costs and healthy liquidity, though New SLC implementation has had some impact.
Credit Challenges
- Significant reliance on Delta for enplanement activity.
- Elevated near term debt metrics, which are expected to improve over time through anticipated enplanement growth and limited future debt.
Rating Sensitivities
For Upgrade
- More rapid reduction in leverage than anticipated, resulting in lower airline costs and higher coverage.
- Material increase in liquidity following New SLC implementation.
- Significant, sustained growth in origination & destination traffic.
For Downgrade
- While not expected, additional borrowing beyond what is currently contemplated to complete the New SLC.
- Substantial reduction in passenger traffic stemming from structural changes to Delta’s hubbing strategy.
To access rating and relevant documents, click here.