KBRA Affirms Ratings for Metropolitan Nashville Airport Authority Airport Improvement Revenue Bonds (Senior Lien) at AA- and Subordinate Airport Revenue Bonds at A+, with a Stable Outlook
3 Nov 2023 | New York
Kroll Bond Rating Agency (KBRA) affirms the long-term rating of AA- with a Stable Outlook and the long-term rating of A+ with a Stable Outlook, respectively, to the Metropolitan Nashville Airport Authority Airport Improvement Revenue Bonds and Subordinate Airport Improvement Revenue Bonds.
A surveillance report will follow.
Key Credit Considerations
The ratings were affirmed because of the following key credit considerations:
- Growing population and expanding economy, with a large institutional presence (state capital, higher education, health care) and significant private sector investment and corporate relocations.
- Established, robust enplaned passenger growth trend has resumed following the pandemic.
- Well-maintained financial operations characterized by abundant coverage and considerable liquidity.
- Large, planned capital program; entails milestone and completion risk.
- Sharp rise in outstanding debt is likely to increase fixed cost component of the financial structure.
- Significant progress in meeting capital program milestones within budget and with limited impact on debt and financial metrics.
- Secular decline in enplaned passenger activity.
To access rating and relevant documents, click here.