NEW YORK - Moody's Investors Service has revised the outlook on the Greater Orlando Aviation Authority, Fla.'s (GOAA) revenue bonds to stable from negative.
Moody's assigned a Aa3 rating to GOAA's $37.5 million of Series 2012A airport facilities refunding revenue bonds, and affirmed the Aa3 underlying rating on the authority's outstanding parity debt and the A1 rating on the rated outstanding subordinate revenue debt.
The stable outlook is due to improving financial metrics including a FY 2011 debt service coverage ratio of 1.70 times. Moody's also notes an increase in enplanements for FY 2011 as well as a rebound in tourism in the Orlando area following the recession.
While Moody's expects debt service coverage to remain pressured in FY 2012 due to expected seat capacity declines, decreasing debt service requirements beginning in FY 2013 will alleviate this concern.
The underlying rating is based on the authority's strong financial liquidity, diverse air carrier service, and strong historic enplanement levels due to the region's position as a key international tourist destination.