Press Release|Public Finance

KBRA Affirms A+ Rating, Stable Outlook on Greater Asheville Regional Airport Authority Airport System Revenue Bonds

28 Mar 2024   |   New York


KBRA affirms the long-term A+ rating, with a Stable Outlook assigned to outstanding Airport System Revenue Bonds previously issued by the Greater Asheville Regional Airport Authority ("GARAA" or "the Authority"). The Authority, an independent, fully autonomous entity, manages, operates and maintains Asheville Regional Airport ("AVL" or "the Airport").

Airport System Revenue Bonds are secured by a pledge of net revenues generated by AVL, GARAA’s sole airport. AVL serves the City of Asheville, the State of North Carolina, and the Asheville, NC Metropolitan Statistical Area. AVL provides only domestic service, nearly all of which is origin and destination (O&D).

A Surveillance Report will follow.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Growing air trade area, anchored by established leisure destinations, supports strong air travel demand.
  • Primary carrier, Allegiant, enjoys very favorable yield and has a maintenance base at the Airport.
  • Solid liquidity and, even after debt service ramps up starting in FY 2026, sufficient DSC.

Credit Challenges

  • Pro-forma debt metrics that are elevated relative to AVL’s size and operating scope.
  • Limited formal policies and procedures for financial and debt management, offset by experience of leadership.

Rating Sensitivities

For Upgrade

  • Improved debt metrics through amortization and growth in enplanements, operations, and liquidity.

For Downgrade

  • An unexpected, material and sustained decline in passenger traffic at AVL created by the loss of an air carrier serving the Airport and/or an exogenous event (e.g., health emergency).

To access rating and relevant documents, click here.



A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003731

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