Standard & Poor's raised its rating on Des Moines Airport Authority by one level to A due to improved debt service coverage ratios.

"The upgrade reflects our assessment of a small-hub airport with strong debt service coverage and a stable air trade service area," said Standard & Poor's analyst Georgina Rovirosa.

The credit's strengths include the airport's solid origination and destination market combined with a good air trade service area economy;  historically strong high debt service coverage, at no lower than 2 times in the past five years; and a relatively low debt burden with no additional borrowing plans.

Credit challenges include competition from two surrounding airports with low-cost carrier service and a moderately high cost per passenger rate compared to other small-hub airports.

The airport serves Iowa's largest city and about 1 million passengers annually.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.