KBRA Affirms AA- Rating, Stable Outlook to Lee County, FL Airport Revenue Bonds
4 Sep 2025 | New York
KBRA affirms the AA- long-term rating, with a Stable Outlook, for Lee County, Florida's outstanding Airport Revenue Bonds. 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, and Series 2024 benefit from a specific pledge of Passenger Facility Charge (PFC) revenues which are otherwise excluded from Net Revenues.
Southwest Florida International Airport (the Airport) is the only member of the Airport System. The Airport is owned by Lee County, governed by the Lee County Board of County Commissioners, and operated by the Lee County Port Authority. Airport System finances are maintained as an enterprise fund of the County.
Key Credit Considerations
The rating affirmation reflects the following key credit considerations:
Credit Positives
- Diversifying, leisure-oriented service area which generates robust origination & 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 $1.6 billion capital improvement program (CIP), which will materially elevate debt service and operating costs.
- Material increase in costs and lengthened construction schedule associated with Phase 1 of the CIP.
- On-going vulnerability of the air trade area to cyclicality in the broader economy.
The Stable Outlook reflects KBRA’s expectation the Authority’s operating performance and liquidity, fueled by healthy enplanement activity, will remain consistent with historical levels resulting in debt service comfortably above required minimums. Furthermore, KBRA expects the Airport’s recent adjustments to Phase 1 of the terminal expansion program will not meaningfully increase borrowing and operating costs, enabling the Airport to maintain its competitive position.
Rating Sensitivities
For Upgrade:
- Continued growth in non-airline revenues resulting in higher than anticipated debt service coverage and liquidity levels.
- Resolution of CIP delay without material financial consequence and delivery of remaining projects on-time and on-budget.
For Downgrade:
- Increase in debt beyond what is currently contemplated resulting in material deterioration in related credit metrics.
- While unlikely, a structural decline in air travel demand resulting materially reduced revenues and weakened financial flexibility.
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