Moody's Investors Service said it has downgraded the city of Colorado Springs airport system revenue refunding bond ratings to Baa1 from A3 on the Series 2007A, the Series 2007B, and the Series 2002A.
The rating outlook has been revised to stable from negative.
The downgrade to Baa1 rests principally upon the continued erosion of the City of Colorado Springs Airport Enterprise competitive position vis-a-vis Denver International Airport (DIA), declining financial metrics and stagnating local economy that has exposure to military spending.
Partially offsetting the airport's weak competitive position and declining financial performance, and ultimately reflected in the stable outlook is the authority's sizeable cash balance with 820 days cash as of fiscal year end 2011.
The stable outlook also reflects very limited future capital improvement program and modest city debt burdens. The city of Colorado Springs is rated Aa2 (long term issuer rating).