Public Finance: U.S. General Airport Revenue Bond Rating Methodology

Executive Summary

This document describes KBRA’s rating methodology as it pertains to bonds issued by public sector entities and payable from the revenue bond pledge of U.S. airports or airport systems. It provides a framework for assessing the credit quality of airports that encompass a wide diversity in size, operating environment, and revenue and cost structures. The methodology also identifies the rating determinants used in the rating assessment and discusses how they are applied in making a rating determination. For information on KBRA’s rating scale, please see KBRA’s Rating Scale and Definitions.

The rating is based on an assessment of the airport or airport system’s general airport revenue bond (GARB) overall credit strength and reflects the ability to make timely and in-full debt service payments. KBRA’s analysis combines both qualitative and quantitative factors through a comprehensive assessment of…