NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns a long-term rating of AA to the Wayne County Airport Authority, MI: Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025D; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025E; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025F; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025G; and Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025H. KBRA additionally affirms the long-term rating of AA for the Authority’s outstanding Airport Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Market position as primary commercial airport for the broad and diverse Detroit CSA (the 14th most populous metropolitan area in the U.S.) supports significant O&D activity that forms the basis for hubbing.
- Delta’s continuing commitment to the Airport and its strategic value as a core, mid-continent hub, and gateway for international service.
- Low airline costs and limited future capital needs.
Credit Challenges
- Passenger enplanement activity has recovered substantially from pandemic lows, though continues to trail the overall U.S. air market due to diminished connecting activity when compared to the pre-pandemic period.
- Enplanement dependency on Delta.
Rating Sensitivities
For Upgrade
- A sustained trend of deleveraging accompanied by sustained, long-term growth in airport utilization.
For Downgrade
- While not expected, a significant and sustained reduction in Delta service.
- Material increase in leverage without a commensurate rise in resources available for repayment.
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Methodologies
Disclosures
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 www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1011410
Contacts
Analytical Contacts
Peter Scherer, Senior Director (Lead Analyst)
+1 646-731-2325
[email protected]
Douglas Kilcommons, Managing Director (Rating Committee Chair)
+1 646-731-3341
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Business Development Contacts
William Baneky, Managing Director
+1 646-731-2409
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James Kissane, Senior Director
+1 646-731-2380
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