Moody’s Investors Service maintained Phoenix Sky Harbor International Airport’s bond ratings on the Airport’s senior (Aa3) and junior (A1) liens. Moody’s upgraded the airport’s rental car bonds to ‘A2’ as a result of regular growth in transaction days, and strong bond coverage and liquidity. The ‘A2’ rating on the rental car bonds is the highest rating among the 16 standalone facilities rated by Moody’s.
Standard and Poor’s Ratings Services (S&P) also affirmed its ‘AA-’ rating on the Airport’s senior lien, and ‘A+’ rating on the airport’s junior lien. S&P maintained an ‘A’ rating on the Airport’s rental car center bonds, which the rating service upgraded in 2015.
The ratings agencies cite several factors that contributed to Sky Harbor’s high bond ratings, including a robust demand for air service in the market, the airport’s low cost structure, a competitive airline environment, an experienced and effective administrative team, and the Airport’s recent strong financial performance.
A higher bond rating means the airport pays lower interest rates when it borrows funds for airport improvements and modernization projects.
No local tax dollars are used to support Phoenix Sky Harbor. The airport is funded with the revenue that it generates.