NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AA- with a stable outlook to the Dallas/Fort Worth International Airport (DFW) Joint Revenue Improvement Bonds, Series 2014C. This rating applies to all of the Airport’s outstanding Joint Revenue Improvement Bonds.
This rating is based on KBRA’s U.S. General Airport Revenue Bond Rating Methodology, published on April 23, 2014. In the process of assigning the rating, KBRA reviewed multiple sources of information, met with Airport management, and conducted a site visit of Airport facilities.
The Bonds are payable solely from and secured by an irrevocable first lien on and pledge of Pledged Revenues and Pledged Funds. Pledged Revenues include as Gross Revenues the revenues received by the Airport from the rentals, fees and charged collected from the airlines, and from other non-airline sources, including capital transfers and special revenues. Pledged Funds include amounts on deposit in the Debt Service Fund and Debt Service Reserve Fund.
Proceeds from the Bonds will finance capital improvements related to the Airport’s Terminal Renewal and Improvement Program (TRIP), and various other projects including parking, terminal, airfield, commercial development, and environmental needs.
The key strengths of KBRA’s rating include the strong management team which has demonstrated an ability to effectively deal with the complexities of running a major U.S. airport, as well as the growing metropolitan area population and economic base that supports origination and destination (O&D) traffic. The geographic location in the central U.S., operational advantages of facilities, along with ample capacity, supports connecting activity, and are additional major strengths. In addition, significant non-airline activity diversifies revenues, and provides source of discretionary capital funding. Unrestricted cash balances provide good liquidity for operations, and lessen concerns regarding high debt levels.
To view the report, please visit www.krollbondratings.com.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
