Moody's Investors Service said it has downgraded to Aa3 from Aa2 the rating of Clark County, Nev., airport enterprise's senior lien general aviation revenue bonds.
At the same time, Moody's assigned an A2 rating to the enterprise's $118 million airport system junior subordinate lien revenue notes Series 2014B . The outlook is stable.
The downgrade to Aa3 reflects Moody's assessment that the senior lien debt is better positioned at Aa3, compared to other highly rated peers.
Moody's notes that the senior lien debt service coverage remains well above the median near 4.0 times, but the lack of debt service reserve funds on some series weakens the positive impact of the high coverage.
Additionally, the enterprise as a whole has a complex debt structure with three liens, including VRDOs, BANs and swaps that other similarly rated airports do not have. This complex debt structure, as well as the unique airline use and lease agreement requires active management, which the airport has displayed both historically and currently.
The A2 rating reflects the anticipated four to five year tenor, slimmer financial metrics than the senior or subordinate lien and market access risk.
