Fitch Ratings affirmed its top ratings on the Minneapolis-St. Paul Metropolitan Airport Commission and its $261 million of general obligation debt.
“We are pleased to maintain a AAA rating with a stable outlook given the economic challenges facing the aviation industry today,” said commission spokesman Patrick Hogan.
The AAA rating and stable outlook reflect the commission’s very large and diverse tax base, and sound management and cost structure at the Minneapolis-St. Paul International Airport, which ensures all commission debt is self-supporting, analysts wrote.
The GOs carry a full faith and credit pledge although the commission does not currently levy a property tax to support the debt. Under the bond resolutions, if the commission’s debt service fund balance ever falls below the debt service due on all airport debt for the following 27-month period, it must levy an ad valorem tax throughout its jurisdiction, or issue refunding bonds.
The commission’s cash and cash equivalents totaled $314.5 million, and its net operating income was $114.8 million in fiscal 2008 while it collected $54.7 million of passenger-related charges. The airport shifted to general airport revenue bonds a decade ago as it launched its 2010 expansion plan.
