Standard & Poor’s on Monday revised its outlook to stable from positive on bonds issued by Broward County on behalf of Fort Lauderdale-Hollywood International Airport. The outlook revision was due to recent declines in enplanements and affects $856 million of debt, said a report by analyst Laura Macdonald.Standard & Poor’s affirmed its A-plus rating on the county’s airport system revenue bonds and its A rating on the county’s passenger facility charge/airport system revenue convertible-lien bonds. The ratings are based on the airport’s low cost structure, diversified carrier mix and revenue base, and strong service area economics, offset by weak cash-flow debt-service coverage, Macdonald said.Offsetting factors include the potential for higher capital needs if strong traffic growth continues, which could place pressure on the airport’s low cost structure. The current proposed capital improvement program for fiscal 2008-2012 totals $1.4 billion. The major project in the CIP is the extension of the south runway, for which the airport has allocated $678 million over the next five years. Funding for the CIP is expected to come primarily from future debt issuances totaling $788 million with remaining funds to come from the airport, PFC revenues, and grants.“We expect that management will prudently manage its capital improvement plan while maintaining a low cost structure,” Macdonald said. “Upward rating potential is constrained by the airport’s weak cash flow debt service coverage, which at the same time helps keep the cost structure low.”
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"Bond market investors are all wishing that April was behind us as they are anxious to hear the Fed's statement at its next FOMC meeting," noted BofA Global Research. "The statement should be no surprise as the market consensus has converged to 'higher for longer' rates.
April 26 -
CDIAC's revamped website, which launches May 1, will offer accessibility to state and local debt from issuance through maturity; and the ability to create summary reports based on search features.
April 26 -
The Governmental Accounting Standards Board is looking for feedback on disclosure requirements related to infrastructure projects.
April 26 -
The MSRB is warning investors that the redemption of Build America Bonds under an extraordinary redemption provision could result in losses, especially for those purchased at a premium.
April 26 -
With billions of federal funding available from the Infrastructure Investment and Jobs Act, one observer says it could be limiting the amount of municipal bonds issued by the sector.
April 26 -
Teague, most recently an executive director of the municipal securities department at Morgan Stanley, will focus on surface transportation.
April 26