Moody's Investors Service said it has downgraded the city of Long Beach, Calif.'s senior airport revenue bonds to A3 from A2.
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The outlook has been moved to stable.
The A3 rating reflects the airport's niche position in the economically diverse Los Angeles metropolitan market, the low cost to airlines and no future new money debt issuance plans.
The downgrade reflects continued enplanement losses, driven by JetBlue, causing the airport to underperform compared to passenger projections related to the most recent debt issuance for its terminal renovation.
This comes at a time when that debt service begins to amortize, narrowing financial metrics.
