KBRA Assigns AA Rating to Various Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport) Airport Revenue Bonds; Affirms Rating for Parity Bonds
3 Jun 2025 | New York
KBRA assigns a long-term rating of AA to the Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport): Airport Revenue Bonds, Series 2025A (Non-AMT); Airport Revenue Bonds, Series 2025B (AMT); Airport Revenue Refunding Bonds, Series 2025C (Non-AMT); and, Airport Revenue Refunding Bonds, Series 2025D (AMT). KBRA additionally affirms the long-term rating of AA for the Authority's outstanding Airport Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Market position as primary commercial airport for the broad and diverse Detroit CSA (the 14th most populous metropolitan area in the U.S.) supports significant O&D activity that forms the basis for hubbing.
- Delta’s continuing commitment to the Airport and its strategic value as a core, mid-continent hub, and gateway for international service.
- Low airline costs and limited future capital needs.
Credit Challenges
- Passenger enplanement activity has recovered substantially from pandemic lows, though continues to trail the overall U.S. air market due to diminished connecting activity when compared to the pre-pandemic period.
- Enplanement dependency on Delta.
Rating Sensitivities
For Upgrade
- A sustained trend of deleveraging accompanied by sustained, long-term growth in airport utilization.
For Downgrade
- While not expected, a significant and sustained reduction in Delta service.
- Material increase in leverage without a commensurate rise in resources available for repayment.
This rating action press release was updated on June 4, 2025 to correct the name of the Airport Revenue Refunding Bonds, Series 2025D (AMT) and remove repeated language in the Key Credit Considerations.
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