KBRA Assigns AA- Rating to Miami-Dade County Aviation Revenue Bonds; Outlook is Stable
June 25 2024 - 1:26PM
Business Wire
KBRA assigns a long-term rating of AA- to the Miami-Dade County
Aviation Revenue Refunding Bonds, Series 2024A (AMT) and Series
2024B (Non-AMT). KBRA additionally affirms the long-term rating of
AA- to the outstanding Aviation Revenue Bonds issued by Miami-Dade
County, FL. The Outlook is Stable.
The Miami-Dade Department of Aviation ("the Department" or
"MDAD"), an enterprise fund of the County, operates Miami
International Airport ("the Airport" or "MIA"), three general
aviation airports, and a training airport. Aviation Revenue Bonds
are special obligations of the County, payable primarily from Net
Revenues derived from the Department's operation of MIA.
Key Credit Considerations
The ratings actions reflect the following key credit
considerations:
Credit Positives
- Large and growing air service area, anchored by the City, a
vibrant center for tourism and trade.
- Advantageous geographic location as an international gateway to
Latin America and the Caribbean.
- Healthy operating performance, liquidity and an effectively
managed CIP.
Credit Challenges
- Elevated debt metrics, which may be further pressured by future
issuance of GARBs to fund the CIP.
- Moderate, continued reliance on international traffic, which
exposes MIA to foreign economic and health risks.
Rating Sensitivities
For Upgrade
- Further strengthening of liquidity and debt service coverage,
coupled with moderating leverage.
For Downgrade
- Issuance of additional debt not supported by a commensurate
rise in resources for its repayment.
- An unexpected, severe decline in passenger traffic that
pressures operating performance and liquidity.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. General Airport Revenue Bond Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Only those ratings on securities issued by this Issuer that also
are denoted on the Security Ratings tab for this Issuer on KBRA.com
as “endorsed” by Kroll Bond Rating Agency Europe Limited into the
European Union and/or by Kroll Bond Rating Agency UK Limited into
the UK are covered by the disclosures set forth in this press
release and the corresponding Information Disclosure Form. No other
ratings on issuances by this Issuer have been endorsed into the
European Union or the UK, and the disclosures set forth herein and
in the corresponding Information Disclosure Form are inapplicable
to those ratings and may not be used for regulatory purposes by
European Union or UK investors in these securities.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004892
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Analytical Contacts
Douglas Kilcommons, Managing Director (Lead Analyst) +1
646-731-3341 douglas.kilcommons@kbra.com
Linda Vanderperre, Senior Director +1 646-731-2482
linda.vanderperre@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com