Jackson Municipal Airport Authority’s bonds downgraded by Fitch

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP April 8, 2014 19:19

Jackson Municipal Airport Authority’s bonds downgraded by Fitch

Fitch Ratings has downgraded the Jackson Municipal Airport Authority’s airport revenue bonds of approximately $39.4 million to “BBB+” from “A-.” The rating outlook remains “stable. “

The downgrade reflects concerns related to the pending loss of the airport’s second largest carrier, Southwest Airlines, and its serviced destinations at an already destination-limited airport. In December 2013, Southwest Airlines announced it was discontinuing all service to and from the Jackson-Evers International Airport (airport) by June 7, 2014. The service cut will likely lead to measurable and potentially permanent declines in the airport’s small enplanement base. While the airport historically maintained strong financial metrics, Fitch believes that Southwest’s actions, absent a backfill of service, will translate to a higher airline and passenger cost profile in order to maintain stable debt service coverage performance. Fitch also views the monthly use and lease agreement as additional exposure to airline revenue generation. Fitch will continue to monitor cost containment actions, successes to replace lost service and revenue elasticity in light of increasing costs.

The stable outlook reflects the importance of the airport’s origination/destination (O&D) market to the Jackson area as well as its relatively low leverage similar to peers.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP April 8, 2014 19:19
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Ffinance%2Fjackson-municipal-airport-authoritys-bonds-downgraded-by-fitch%2F"> registered </a> users can comment.