KBRA Affirms Miami-Dade County Aviation Revenue Bonds at AA-, Stable Outlook
16 Nov 2023 | New York
KBRA affirms the long-term AA- rating, with a Stable Outlook assigned to outstanding Aviation Revenue Bonds issued by Miami-Dade County, FL ("the County").
The Miami-Dade Department of Aviation ("the Department" or "MDAD"), an enterprise fund of the County, operates Miami International Airport ("the Airport" or "MIA"), three general aviation airports, and a training airport. Aviation Revenue Bonds are special obligations of the the County, payable primarily from Net Revenues derived from the Department's operation of MIA.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
- Large, growing air service are, anchored by the City of Miami, a vibrant center for tourism and trade.
- Advantageous geographic location as an international gateway to the Caribbean and Latin America.
- Healthy operating performance, liquidity and an effectively managed capital improvement plan.
- High, though moderating, cost per enplanement and debt per enplanement ratios.
- Some continued reliance on international traffic, which exposes MIA to foreign economic and health risks
- Further strengthening of liquidity and debt service coverage, coupled with moderating leverage.
- An unexpected, severe decline in passenger traffic that pressures operating performance and liquidity.
- Issuance of additional debt not supported by a commensurate increase in resources available for repayment.
A Surveillance Report will follow.
To access rating and relevant documents, click here.