City of Salt Lake, UT – GARBs (Salt Lake City International Airport) Surveillance Report

Rating Summary

The rating for Salt Lake City, Utah’s (the City) Airport Revenue Bonds (the Bonds) continues to reflect the Salt Lake City Department of Aviation’s (the Department) successful management of its nearly completed capital improvement program (The New SLC) through which it replaced the terminal facilities at Salt Lake City International Airport (SLC or the Airport), as well as the Airport’s economically diverse air trade area that provides a strong foundation for business and leisure travel demand and sound financial operations, demonstrated by strong coverage of annual debt service and healthy liquidity. Offsetting these strengths are the Airport’s now substantial debt burden and increased operating costs associated with The New SLC and continued reliance on traffic generated by Delta Air Lines (Delta), which operates a connecting hub at the Airport. The latter concern, in KBRA’s view, is mitigated by the strategic importance of SLC to Delta’s overall network and a 20-year…