Press Release|Public Finance
KBRA Affirms A+ Rating for City of Fresno, CA Airport Revenue Bonds
23 Apr 2025 | New York
KBRA affirms the A+ rating with a Stable Outlook for the City of Fresno, CA Airport Revenue Bonds. Fresno - Yosemite International Airport is owned and operated by the City of Fresno through its Department of Airports.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Favorable pre and post pandemic enplanement trends.
- Healthy operating performance, supported by a hybrid use and lease agreement and a favorable mix of airline and non-airline revenues.
- Solid pro-forma debt service coverage and healthy liquidity.
Credit Challenges
- Significant increase in leverage associated with the terminal expansion project.
- Small, though growing enplanement base makes the Airport more susceptible to air carrier strategy shifts.
Rating Sensitivities
For Upgrade
- Strong enplanement growth leading to diversification of routes served, accompanied by growing non-airline revenues and improving debt service coverage.
- Moderating leverage metrics.
For Downgrade
- While not expected, a significant increase in Airport Revenue Bond debt without a commensurate increase in resources available for its repayment.
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