Fitch Ratings said it has upgraded to AA-minus from A-plus the rating on the city of Atlanta's approximately $1.7 billion of senior-lien airport general revenue bonds issued on behalf of Hartsfield-Jackson Atlanta International Airport (ATL).
In addition, Fitch has affirmed the A-plus rating on approximately $828 million of outstanding passenger facility charge (PFC) and subordinate lien revenue bonds.
The rating outlook for all bonds is stable.
The upgrade of the senior GARBs reflects Fitch's view that the new airline use and lease agreement (AUL) will maintain the airport's strong cashflow generation and low leverage, even when taking into account Atlanta's new $6 billion capital program.
In Fitch's rating case, metrics are forecast to meet its AA-category criteria standards, maintaining a high degree of financial flexibility even in times of stress. The upgrade further reflects the comfort provided by Delta's long-term commitment to serve the airport as evidenced by a 20-year agreement that includes a provision to maintain its corporate headquarters in Atlanta through the term of the agreement.
