Moody’s Investors Service last week changed the rating outlook to positive from stable on the Metropolitan Nashville Airport Authority’s bonds.
The outlook affects $197.3 million of outstanding revenue bonds sold for Nashville International Airport and John C Tune Airport, a general aviation facility. Moody’s also affirmed its A2 rating.
“The positive outlook is based on the positive economic trends in the service area, which are expected to keep enplanement levels stable or growing along with declining debt service levels,” said Moody’s analyst Earl Heffintrayer.
The A2 rating is based on the airport’s monopoly in a growing metropolitan area, low airline cost per enplanement and adequate liquidity.
Moody’s also upgraded the authority’s rental car facility bonds to A3 from Baa1. The upgrade affects $63 million of outstanding bonds. The outlook is stable.
Heffintrayer said the upgrade is based on the successful completion of the consolidated rental car facility on time and under budget, as well as customer facility charge collections that exceed projected levels and have resulted in additional liquidity.