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KBRA Assigns AA- Rating to City of Austin, TX Airport System Revenue and Refunding Bonds, Series 2026A (Non-AMT) and Series 2026B (AMT); Affirms Rating for Outstanding Airport System Revenue Bonds

24 Mar 2026   |   New York

Contacts

KBRA assigns a long-term rating of AA- to the City of Austin, TX Airport System Revenue and Refunding Bonds, Series 2026A (Non-AMT) and Airport System Revenue and Refunding Bonds, Series 2026B (AMT). KBRA additionally affirms the long-term rating of AA- for the City's outstanding Airport System Revenue Bonds. The rating Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Established enplaned passenger growth trend, supported by a vibrant, diverse underlying economy.
  • Strong airline commitment to market, with the new, relatively long dated AULA (FY 2035) ensuring a minimum 1.4x debt service coverage through supplemental charges.
  • Well-managed financial operations, characterized by solid debt service coverage and substantial liquidity.

Credit Challenges

  • Capital intensive nature of operations, exacerbated by rapid enplanement growth over an extended period.
  • Increasingly constrained, though still sufficient, financial flexibility given expected, significant increase in debt.
  • Construction, implementation and execution risks associated with a transformative, multi-year capital plan.

Rating Sensitivities

For Upgrade

  • While not anticipated over the near-term, completion of the AEDP within the expected timeline and budget, accompanied by continuing strong enplanement growth, and related non-airline revenue, leading to significant moderation in the Airport’s pro-forma debt burden.

For Downgrade

  • Failure to achieve projected enplanement growth resulting in weaker financial performance and higher leverage and airline costs than what it is currently anticipated.
  • Absent a commensurate rise in resources available for repayment, the issuance of additional debt beyond what is currently contemplated.

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: 1014135