Moody's Investors Service said it has downgraded to A2 from A1 the rating on the Burbank-Glendale-Pasadena Airport Authority, Calif.'s outstanding revenue bonds.
The outlook is revised to stable
The rating reflects BGPAA's lower level of enplanements amid an increased leverage profile, tighter financial flexibility and an ongoing transition from historically robust debt service coverage ratios to lower ratios that will continue to be pressured in the medium term.
The rating also incorporates the authority's strong liquidity position, prudent management and the maintenance of a very competitive cost structure, mitigating the threat presented by four other airports serving the greater Los Angeles area. The authority operates Bob Hope Airport.
The outlook was revised to stable based on the advanced state of the construction projects, and expectations of near stabilization of enplanement declines amid economic recovery in the region.