Press Release|Public Finance
KBRA Affirms AA- Rating for City of Austin, Texas (Austin-Bergstrom International Airport) Airport System Revenue Bonds
3 Apr 2024 | New York
KBRA affirms the long-term rating of AA- with a Stable Outlook for the City of Austin, Texas (Austin-Bergstrom International Airport) Airport System Revenue Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Vibrant underlying economy featuring large public institutions (State Capital, University of Texas) and a deep and diverse array of private sector employers that have and continue to make sizable investments in the area.
- Established enplaned passenger growth trend.
- Well-managed financial operations characterized by high debt service coverage and substantial liquidity.
Credit Challenges
- Rapid passenger activity growth necessitates large capital program.
- Large capital program entails construction risk.
Rating Sensitivities
For Upgrade
- Completion and operation of facilities financed by the Airport Expansion and Development Program.
For Downgrade
- Significant additional debt issuance beyond the scope of identified projects, that sharply increases debt metrics.
To access rating and relevant documents, click here.