Tucson, Ariz. (June 25, 2013) In a report issued June 24, Fitch Ratings affirmed the Tucson Airport Authority's (TAA) rating on approximately $58.4 million in subordinate lien airport revenue bonds at "A". The rating outlook is stable.
The report states the residual airline use and lease agreement in place for Tucson International Airport (TIA) allows the airport to maintain a stable cost per enplanement and produce consistently strong debt service coverage levels. Coverage levels on the subordinate lien debt will also benefit from the final maturity on June 1, 2013 of TAA's only remaining senior lien bonds.
Additional key rating drivers include extremely low debt burden and TIA's manageable capital program, according to Fitch. The airport's five-year capital plan is "very modest," and most near-term projects are expected to be funded primarily through federal and state grants.
Fitch also cited as strengths TIA's balanced airline mix of legacy and low-cost airlines, and stable market share of its two dominant carriers Southwest Airlines and American Airlines, as well as their long history of serving the market.