KBRA Affirms A+ Rating for Hillsborough County Aviation Authority, FL Tampa Int'l Airport CFC Bonds; Outlook is Stable
16 Aug 2023 | New York
KBRA affirms A+ rating with Stable Outlook for Hillsborough County Aviation Authority, FL Tampa Int'l Airport CFC Revenue Bonds.
Key Credit Considerations
The rating was affirmed because of the following key considerations:
- Legal framework provides strong bondholder protections and features a 1.25x rate covenant (excluding rolling coverage), ability to adjust the CFC, and established reserves.
- The Tampa Bay area is an established and popular leisure/recreation destination that supports high levels of rental car utilization.
- Passenger activity at TPA has rebounded well from the sharp reductions recorded during the COVID-19 period.
- Sizable leisure/recreation component represents vulnerability to economic downturns, as evidenced by sharp enplanement and rental car transaction declines during the COVID-19 pandemic.
- Competitive market for leisure/recreation destinations and potential for shifts in consumer preferences may reduce demand for rental cars at Tampa International Airport (TPA)
- Competition from rideshare services may weigh negatively on CFC revenue growth going forward.
- Trend of steady growth in rental car transactions resulting in sustained increase in pledged revenues.
- Erosion in rental car market and rental car transactions pressuring debt service coverage.
To access rating and relevant documents, click here.