Press Release|Public Finance
KBRA Upgrades Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport) Airport Revenue Bonds to AA
11 Sep 2024 | New York
KBRA upgrades to AA, from AA-, the Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport) Airport Revenue Bonds. The Outlook is Stable.
Key Credit Considerations
The rating upgrade reflects of the following key credit considerations:
Credit Positives
- Market position as primary commercial airport for the broad and diverse Detroit CSA (the 14th most populous metropolitan area in the U.S.) supports significant O&D activity that forms the basis for hubbing.
- Delta’s continuing commitment to the Airport and its strategic value as a core, mid-continent hub, and gateway for international service.
- Low airline costs and limited future capital needs.
Credit Challenges
- Passenger enplanement activity has recovered substantially from pandemic lows but trails the recovery of the U.S. air market due to reliance on international traffic which has been slow to recover, as well as regional airlines with diminished capacity following the retirement of many regional jets in recent years, which continues to weigh on connecting activity.
- Enplanement dependency on Delta, coupled with a fairly high concentration of connecting traffic.
Rating Sensitivities
For Upgrade
- A sustained trend of deleveraging accompanied by a long-term growth in airport utilization.
For Downgrade
- While not expected, a significant and sustained reduction in Delta service.
- Material increase in leverage without a commensurate rise in resources available for repayment.
To access rating and relevant documents, click here.