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.