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KBRA Affirms A+ Rating With Stable Outlook for Memphis-Shelby County Airport Authority's Airport Revenue Bonds

4 Mar 2026   |   New York

Contacts

KBRA affirms the long-term rating of A+ with a Stable Outlook for the Memphis-Shelby County Airport Authority's (the"Authority") Airport Revenue Bonds. The Authority owns and operates Memphis International Airport (MEM) and two general aviation airports.

Key Credit Considerations

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

Credit Positives

  • Solid enplanement growth, supported by Memphis International Airport's full transition to an origin and destination airport.
  • Diverse operations and revenue resulting from a significant cargo presence. MEM is one of the busiest cargo airports in North America, anchored by FedEx’s corporate headquarters and global hub.
  • Manageable future capital needs, with moderate new debt requirements associated with the capital improvement plan ("CIP").

Credit Challenges

  • Socioeconomic indices are relatively low, which may adversely affect discretionary air travel during economic downturns.
  • Still elevated, though improving leverage metrics in the near-term.
  • Some susceptibility to periodic fluctuations in FedEx cargo volumes and associated landing fees.

Rating Sensitivities

For Upgrade

  • Significantly strengthened financial performance and liquidity, supported by sustained growth in enplanements and related revenues.
  • Execution of upcoming CIP projects on-time and on-budget.

For Downgrade

  • While not expected, significant changes in FedEx business that significantly reduces cargo activity at MEM.
  • A material decline in cargo operations and/or a secular decline in enplaned passenger activity that result in significantly higher Airport rates and charges.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013791