Press Release|Public Finance
KBRA Assigns AA- Rating to City of Austin, TX Airport System Revenue Refunding Bonds, Series 2025 (AMT); Affirms Rating for Outstanding Airport System Revenue Bonds
11 Mar 2025 | New York
KBRA assigns a long-term rating of AA- to the City of Austin, TX Airport System Revenue Refunding Bonds, Series 2025 (AMT). KBRA additionally affirms the long-term rating of AA- for the City's outstanding Airport System Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Vibrant underlying economy featuring large public institutions (State Capital, University of Texas) and a deep and diverse array of private sector employers that have and continue to make sizable investments in the area.
- Established enplaned passenger growth trend.
- Well-managed financial operations characterized by high debt service coverage and substantial liquidity.
Credit Challenges
- Rapid passenger activity growth necessitates large capital program.
- Large, multi-year capital program entails construction, implementation and execution risks.
Rating Sensitivities
For Upgrade
- A rating upgrade is not anticipated over the near-term given plans for sharply increased leverage under the Airport Expansion Development program, but completion of the program within the expected timeline and budget accompanied by continuing strong enplanement growth and moderation of the anticipated debt burden over time could result in upward rating movement.
For Downgrade
- Significant additional debt issuance beyond the scope of identified projects, that sharply increases debt metrics.
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