KBRA Assigns AA- Rating to Lee County, FL Airport Revenue Bonds Series 2026; Affirms Outstanding Bonds at AA-; Outlook is Stable
9 Feb 2026 | New York
KBRA assigns a long-term rating of AA- to Lee County, Florida's (the County) Aviation Revenue Bonds Series 2026A-1 (AMT); Airport Revenue Bonds Series 2026A-2 (Put Bonds) (AMT); and Airport Revenue and Refunding Bonds Series 2026B (Non-AMT) issued for Southwest Florida International Airport (the Airport). Concurrently, KBRA affirms the AA- long-term rating on the County's approximately $862.8 million outstanding Aviation Revenue Bonds. The Outlook is Stable.
The Airport is owned by Lee County (the County) and operated by the Lee County Port Authority (the Authority). The County’s Airport Revenue Bonds are secured by and payable from a pledge of net revenues generated by the Airport System and certain funds and accounts held under the Bond Resolution. The County’s Series 2021A, Series 2021B, Series 2024, and a portion of the Series 2026B Bonds benefit from a specific pledge of Passenger Facility Charge (PFC) revenues which are otherwise excluded from Net Revenues. The Airport is the only member of the Airport System. Airport System finances are maintained as an enterprise fund of the County.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Diversifying, leisure-oriented service area which generates robust origination and destination (O&D) passenger traffic.
- Sound operating performance, liquidity, and debt service coverage, fueled by healthy non-airline revenues.
Credit Challenges
- Significant, largely debt funded $2.3 billion capital improvement program (CIP), which will materially elevate debt service and operating costs.
- Material increase in costs and lengthened construction schedule associated with redesign of Phase 1 of the Terminal Expansion Program.
- On-going vulnerability of the air trade area to national economic cycles.
Rating Sensitivities
For Upgrade
- Continued growth in non-airline revenues resulting in higher than anticipated debt service coverage and liquidity levels.
- Settlement or litigation outcome regarding Phase 1 design issues resulting in meaningful offset to resultant cost increases and reduced borrowing.
For Downgrade
- Additional, material increase in the scope and cost of the CIP resulting in debt issuance beyond what is currently contemplated without an offsetting increase in revenues.
- While unlikely, a structural decline in air travel demand resulting materially reduced revenues and weakened financial flexibility.
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