KBRA Assigns AA- Rating to Miami-Dade County Aviation Revenue Bonds; Outlook is Stable
25 Jun 2024 | New York
KBRA assigns a long-term rating of AA- to the Miami-Dade County Aviation Revenue Refunding Bonds, Series 2024A (AMT) and Series 2024B (Non-AMT). KBRA additionally affirms the long-term rating of AA- to the outstanding Aviation Revenue Bonds issued by Miami-Dade County, FL. The Outlook is Stable.
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 ratings actions reflect the following key credit considerations:
Credit Positives
- Large and growing air service area, anchored by the City, a vibrant center for tourism and trade.
- Advantageous geographic location as an international gateway to Latin America and the Caribbean.
- Healthy operating performance, liquidity and an effectively managed CIP.
Credit Challenges
- Elevated debt metrics, which may be further pressured by future issuance of GARBs to fund the CIP.
- Moderate, continued reliance on international traffic, which exposes MIA to foreign economic and health risks.
Rating Sensitivities
For Upgrade
- Further strengthening of liquidity and debt service coverage, coupled with moderating leverage.
For Downgrade
- Issuance of additional debt not supported by a commensurate rise in resources for its repayment.
- An unexpected, severe decline in passenger traffic that pressures operating performance and liquidity.
To access rating and relevant documents, click here.