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.

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.

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.