Press Release|Public Finance

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:

Credit Positives

  • 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.

Credit Challenges

  • 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.

Rating Sensitivities

For Upgrade

  • Trend of steady growth in rental car transactions resulting in sustained increase in pledged revenues.

For Downgrade

  • Erosion in rental car market and rental car transactions pressuring debt service coverage.

To access rating and relevant documents, click here.


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