Press Release|Public Finance
KBRA Affirms AA Rating with a Stable Outlook for Fort Wayne-Allen County Aviation Authority’s GO Bonds
12 Mar 2024 | New York
KBRA affirms the long-term rating of AA with a Stable Outlook for the Fort Wayne-Allen County Aviation Authority’s General Obligation Bonds.
A surveillance report will follow.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives:
- General obligation pledge with stable and growing tax base provides strong source of bond repayment.
- Sizable unrestricted reserves, moderately low leverage, and ongoing tax support position the airport well to weather any further volatility or delays in air traffic’s recovery from the pandemic.
Credit Challenges:
- Economic downturn accompanied by property tax base decline may reduce revenues available for operations.
- Practical limitations on levying for operating and maintenance needs under Indiana’s Circuit Breaker Tax Credit construct.
Rating Sensitivities
For upgrade
- Acceleration of growth and diversification of the District’s economic base.
For downgrade
- Population loss and tax base erosion.
- Significant deterioration in unrestricted reserves and liquidity.
To access rating and relevant documents, click here.