KBRA Assigns an A Rating and Stable Outlook to St. Louis Lambert International Airport Revenue Bonds
11 Sep 2026 | New York
KBRA assigns a long-term rating of A with a Stable Outlook to the City of St. Louis, Missouri (the City) Airport Revenue Bonds Series 2026A (Federally Taxable), Series 2026B (AMT), and Series 2026C (Non-AMT) issued for St. Louis Lambert International Airport (the Airport). Concurrently, KBRA assigns an A rating to the City's outstanding Airport Revenue Bonds.
Proceeds of the Series 2026 Bonds to 1) finance elements of the Airport’s fiscal year (FY) 2027 – 2032 capital improvement plan (CIP) including a runway resurfacing project and planning for the future modernization of the Airport referred to as the Consolidated Terminal Program (CTP); 2) refund all or a portion of the Airport’s outstanding Junior Lien Bank Notes; 3) fund the required deposit to the debt service reserve fund; 4) pay capitalized interest; and 5) costs of issuance.
Airport Revenue Bonds (GARBs) are payable from the Net Revenues generated by the operation of the Airport.
Key Credit Considerations
Credit Positives
- The service area’s broad and diverse economic base that generates consistent demand for air service bolstered by recent economic development activity including a Boeing defense aircraft assembly facility.
- An essentially residual-based operating agreement that provides a base for sound financial operations and coverage of annual debt service.
- Current moderate debt and cost structure which provides some capacity for the CTP, although details on its ultimate scope and financing strategy are unknown.
Credit Challenges
- Local economic growth lags national trends limiting expectations for future gains in passenger volume.
- Senior management transition at a time when the Airport is planning a significant capital program.
- Moderately high pro-forma levels associated with the current CIP that are likely to trend higher with the planned terminal redevelopment.
Rating Sensitivities
For Upgrade
- Sustained growth in enplanement growth leading to increased revenue capacity and moderating leverage.
- Successful negotiation of a new use and lease agreement that materially strengthens the Airport’s financial and capital-planning framework.
- Confirmation that the chosen CTP implementation and financing strategy results in a pro-forma cost and leverage profile which places the Airport at the lower end of peer medium hub airports undertaking capital programs of similar scope and complexity.
For Downgrade
- A material reduction in service by Southwest Airlines or a prolonged economic contraction, resulting in a sustained decline in passenger activity and related revenues.
- Confirmation that the chosen CTP implementation and financing strategy results in a pro-forma cost and leverage profile which places the Airport meaningfully above peer medium hub airports undertaking capital programs of similar scope and complexity.
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