Press Release|Public Finance
KBRA Affirms A+ Rating for City of Fresno, CA Airport Revenue Bonds
26 Apr 2024 | New York
KBRA affirms the long-term rating of A+ with a Stable Outlook to the City of Fresno, CA Airport Revenue Bonds. Fresno Yosemite International Airport is owned and operated by the City of Fresno through its Department of Airports.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Favorable enplanement trends both pre and post pandemic.
- Healthy operating performance, supported by a favorable mix of airline and non-airline revenues.
- Solid pro-forma debt service coverage and healthy liquidity.
Credit Challenges
- Significant increase in leverage associated with the 2023 Project.
- Small, though growing enplanement base, making it more susceptible to air carrier strategy shifts.
Rating Sensitivities
For Upgrade
- Strong enplanement growth leading to diversification of routes served accompanied by growing non-airline revenues and debt service coverage.
- Moderating leverage metrics.
For Downgrade
- While not expected, a significant increase in Airport Revenue Bond debt without a commensurate increase in resources available for its repayment.
To access rating and relevant documents, click here.