Moody’s Upgrades Atlanta’s Airport General Revenue Bonds

Patch Staff Report

In a press release from the City of Atlanta on Wednesday, Moody's Investors Service has announced that Hartsfield-Jackson Atlanta International Airport’s general revenue bonds have been upgraded to Aa3 from A1 on the airport passenger facility charge (PFC) and subordinate lien revenue bonds.

The Aa3 rating also applies to the airport general revenue refunding bonds. Moody’s attributed the upgrade to the airport’s financial and operational strengths.

“The Moody’s rating reflects the commitment of my administration to restore the City of Atlanta’s finances and put us on a solid fiscal foundation moving forward,” said Mayor Kasim Reed in the release. “Hartsfield-Jackson Atlanta International Airport continues to serve as the world’s busiest passenger airport and this report furthers their reputation as a best-in-class trade and transportation hub.”

In its report, Moody’s also cited a number of factors that led to the Aa3 rating, including the city’s improved financial position. Moody’s said: “The rating is also supported by the strong, vibrant local economy that is expected to outpace growth in the broader US economy; the financial strengthening of the airport's two major carriers; and no additional debt planned for at least the next four years.”

According to the release, Moody’s also praised the airport’s strong financial metrics in light of recent completed consecutive major expansion projects including a fifth runway and the Maynard H. Jackson International Terminal. The report stated, “Despite these significant capital investments, leverage metrics are strong, even with all debt considered.”

“The report reflects the commitment and accomplishments that the City of Atlanta has achieved thanks to the vision and leadership of Mayor Reed,” said Chief Financial Officer Jim Beard. “The Finance team will continue to work diligently to ensure that the city’s bond ratings remain strong and stable.”