Moody’s Investors Service assigned an Aa3 rating to Phoenix Sky Harbor International Airport’s senior lien bonds and affirmed the Airport’s outstanding senior (Aa3) and junior (A1) liens.
Standard and Poor’s Ratings Services (S&P) also assigned its ‘AA-’ rating on the Airport’s senior lien, affirmed its ‘AA-’ rating on outstanding senior lien bonds, and affirmed its ‘A+’ rating on the Airport’s junior lien bonds. Both Moody’s Investors Service and S&P noted that Phoenix Sky Harbor’s outlook is stable.
Many factors contributed to Phoenix Sky Harbor International Airport achieving its high bond ratings, including: A strong market position in a competitive airline environment; the Airport’s low cost structure; increased origin and destination traffic; a demonstrated, successful track record of completing large scale capital projects on-time and budget; an experienced and effective leadership team; and the growth of the local economy.
A high bond rating means the airport pays lower interest rates when it borrows funds for airport improvements and modernization projects. Phoenix Sky Harbor is currently in the midst of several important projects to improve its facilities and provide travelers with a more efficient travel experience.
The Airport is currently completing the second of three phases in its modernization of Terminal 3. Sky Harbor is also well into the second phase of a retail renovation of its busiest terminal, Terminal 4. Sky Harbor’s first medical clinic and shops such as Brookstone, TUMI, and TripAdvisor are opening soon in Terminal 4. Improvements are also being made to the international arrivals area in Terminal 4, which will result in a faster and more efficient experience for customers.
Future projects include the extension of the PHX Sky Train® 2.5 miles to the Rental Car Center as well as the addition of an eighth concourse to Terminal 4, which will be occupied by Southwest Airlines.
No tax dollars are used to support Phoenix Sky Harbor. The airport is funded with the revenue that it generates.