Fresno Airport Receives An Improved Credit Outlook From Fitch
Fitch Ratings has announced an improved outlook for Fresno Yosemite International Airport to positive from stable. Fitch also affirmed the Airport’s BBB rating on Airport Revenue Bonds.
Fitch cited several credit strengths as contributing factors for the improved outlook including: high passenger growth rates supported by improvements in the local economy as well as the Airport’s financial metrics including debt service coverage and leverage. The rating agency noted the Airport’s conservative budgeting methods, higher debt coverage ratio, satisfactory and growing liquidity levels. Fitch also acknowledged the Airport’s manageable Capital Improvement Program with no planned future debt issuance. According to Fitch, continued passenger growth and sustainable solid financial metrics could result in a future upgrade to the Airport’s rating.
“Fitch’s improved outlook reflects a number of financial decisions made by airport leadership as well as record passenger growth,” said Director of Aviation Kevin Meikle. “The Airport experienced a 5 percent growth in passengers during fiscal year 2016 and we are seeing the upward trend continue in fiscal year 2017.”
Fitch’s revised outlook follows Standard & Poor’s and Moody’s improved outlook for Fresno Yosemite International Airport Revenue Bonds to positive from stable in December 2015 and August 2016 respectively. The recent improved outlooks from the three prominent bond rating agencies signal to the market a credit upgrade is possible in the near term.
Fresno Yosemite International Airport currently offers Valley passengers daily non-stop flights to Dallas, Denver, Las Vegas, Los Angeles, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, Seattle, and Guadalajara, Mexico on domestic and international carriers. Fresno Yosemite International Airport is a municipally owned entity operating as a self-supporting enterprise. No City of Fresno general funds are used to operate Fresno Yosemite International Airport or Fresno Chandler Executive Airport.