Press Release|Public Finance
KBRA Affirms A+ Rating for Columbus Regional Airport Authority CFC Revenue Bonds with Stable Outlook
21 Mar 2024 | New York
KBRA affirms the long-term A+ rating assigned to the Columbus Regional Airport Authority's (CRAA) Customer Facility Charge (CFC) Revenue bonds, Series 2019 (federally taxable). The Outlook is Stable.
Key Credit Considerations
Credit Positives
- Diverse air trade area and solid regional economic base affords support to the rental car transactions.
- Legal framework provides sound bondholder protection with varied reserves and autonomy to adjust CFCs.
- Level debt service requirements, strong projected debt service coverage and no additional planned borrowings.
Credit Challenges
- Periodic volatility in enplanement activity at the John Glenn International Airport, a function of changing air carrier business model decisions, can impact rental car demand.
- Lagging full recovery in air traffic, transaction days, and CFC collections compared to pre-pandemic levels.
- Present, although modest, competitive threat posed by Transportation Network Companies.
Rating Sensitivities
For Upgrade:
- Material and sustained growth in rental car transaction days and CFC collections that lead to strengthened pledged revenue coverage of debt service without draws from the CFC Surplus Fund.
For Downgrade:
- Inflation or other rental cost pressures that dampen rental car transaction volume and duration.
- While not anticipated, an exogenous shock to the airline industry that reverses the post-pandemic recovery in air travel and rental car activity.
To access rating and relevant documents, click here.