BRADENTON, Fla. — Moody's Investors Service upgraded Hartsfield-Jackson Atlanta International Airport's general revenue bond ratings to Aa3 from A1 citing its financial and operational strengths.
Moody's affirmed its A1 ratings on ATL's passenger facility charge and subordinate lien revenue bonds. The outlook is stable.
The senior-lien rating lift comes as Atlanta prepares to issue $330.7 million of general revenue bonds and $501.4 million of PFC and subordinate revenue bonds for the airport.
"The upgrade to Aa3 for the senior lien bonds is based on the airport's financial and operational strengths, which are well above average even as the airport has recently completed major capital expansion projects," said Moody's analyst Kurt Krummenacker.
The rating is also supported by the "strong, vibrant local economy that is expected to outpace growth in the broader U.S. economy, the financial strengthening of the airport's two major carriers, and no additional debt planned for at least the next four years," he said.
Fitch Ratings maintained an A-plus rating on ATL's general revenue bonds, and A ratings on the PFC and subordinate bonds, which apply to the upcoming refunding. Standard & Poor's maintained its A-plus ratings on the airport's debt, and assigned the ratings to the refunding bonds.
Jim Beard, chief financial officer for the city, said he was pleased with Moody's upgrade. He said it recognized the efforts of the city and aviation department's finance teams, Hartsfield-Jackson's position as the busiest airport in the world, and Atlanta as a major transportation and commerce center.
"Despite the fact that we were not upgraded by all of the rating agencies, we are hopeful that the credit upgrade by Moody's will improve the pricing and positioning of the bonds in the capital markets," he said.
The refunding bonds are expected to price March 25 and 26 with Seibert Brandford Shank as the book-runner. The city's financial advisors are First Southwest Co., Grant & Associates LLC, and Frasca & Associates LLC. Hunton & Williams LLP is bond counsel.
Hartsfield-Jackson retained the title of world's busiest airport in 2012 by the Airport Council International with 95.5 million arriving and departing passengers.
Atlanta is a primary hub for Delta Air Lines and its affiliates, which accounted for 79% of enplanements in fiscal 2013. Next highest are Southwest Airlines and its subsidiary AirTran Airways, which accounted for 14% of airport traffic.
The airport saw 47.5 million domestic and international enplaned passengers in fiscal 2013, an increase of 0.8%, and the fourth year-over-year increase in aircraft boardings.
ATL had more than $3 billion of long-term debt as of June 30, 2013. That included $1.9 billion of general revenue bonds, $914.4 million of PFC and subordinate bonds, and $198.6 million of customer facility charge bonds.
