Portland International Airport received a one-notch upgrade to AA of its revenue bonds from Fitch Ratings on completion of a $2.15 billion, 11-year capital improvement program.
Fitch also revised the outlook to stable from positive, analysts said in a Thursday report. The upgrade affected $1.2 billion in airport revenue bonds.
The Port of Portland, which oversees the airport, also has approximately $1.2 billion of parity bonds not rated by Fitch.
The upgrade "reflects the reduced risk exposures in PDX's capital plan and financial profile following the completion of the terminal core redevelopment project, no additional future borrowing needs over the medium term, and strong financial performance," Fitch said.
The project, described by the port as the largest public infrastructure program in Oregon's history, rebuilt and expanded the airport's main terminal while the facility remained fully operational. The program included upgrades to concourses, parking facilities and construction of a rental car center.
"From the beginning, our North Star was a new PDX that reflects our values and the people and places that make this region special,"
Robinhold said the project created a "world class airport" that doubled its capacity.
The port had $2.7 billion in bonds, contracts and loans payable outstanding at the end of fiscal year 2025, according to its FY2025 audited comprehensive financial report. The outstanding amount of airport long-term debt increased $373.7 million from construction bonds.
S&P Global Ratings affirmed an AA-minus rating and stable outlook for the airport's general revenue bonds ahead of an Aug. 27 bond sale.
"These ratings are among the higher underlying ratings for airport revenue bonds rated by Fitch and S&P," according to the ACFR.
PDX is a regional hub and Oregon's primary air service provider and is supported by the expanding Portland metropolitan service area and limited competition, Fitch analysts said in the report.
The airport's five-year capital plan through 2030 "is sizable and prioritizes capacity, efficiency and climate resiliency," Fitch said. The terminal core, or TCore project, was completed in June 2026, reducing construction risk exposure, Fitch said. Funding sources for the capital plan are well-defined, with a combination of grants, pay-go passenger facility charges, proceeds from prior bonds and additional available funds, analysts said.
Fitch also cited PDX's sizable origin and destination enplanement base and its role as a primary service provider in an expanding metropolitan area.
Alaska Airlines is the leading carrier with an established history of solid service levels at the airport, Fitch said.
"The airport benefits from proactive capital management, diverse non-airline revenue streams and a strong cost-recovery framework under a long-term airline agreement," Fitch analysts said.
Though enplanement numbers still lag pre-COVID-19 pandemic airplane traffic, the port reported the forecast for fiscal year 2026 airline passenger volume is 19 million, which is 7.9% higher than its fiscal 2025 budget estimates, but still roughly 5% below pre-pandemic levels. The airport anticipates it will recover to pre-pandemic levels in fiscal year 2027 or 2028.
