Fitch affirms ‘A’ rating for MSCAA
Friday, August 19, 2016
MEMPHIS, Tenn. (August 19, 2016) – Fitch Ratings has affirmed the Memphis-Shelby County Airport Authority’s (MSCAA’s) ‘A’ rating on the authority’s outstanding $282 million general airport revenue bonds (GARBs). The Airport Authority’s outlook remained stable.
Fitch cited a number of factors that contributed to the rating, including Memphis International Airport's nearly 100 percent origin and destination (O&D) traffic base, carrier diversification, and the presence of FedEx’s massive cargo operations.
The ratings agency also cited the airport's enplanement base, which recovered in fiscal 2016 for the first time in six years, growing to 1.97 million from 1.79 million the year prior. Fitch said it expects enplanement levels to continue growing modestly as other airlines backfill routes cut by Delta and increase capacity by up-gauging aircraft.
“Our financial strength is a source of pride, as it reflects the hard work and dedication of everyone at MEM despite the changing nature of our business,” said Scott Brockman, MSCAA President and CEO. “This rating underscores those efforts and demonstrates that MEM has maintained a solid financial foundation and is looking forward to a very promising future.”
The Airport Authority has retired almost $300 million in long-term debt over the last 10 years and maintains strong credit ratings from Moody’s Investor Service (A3) and Standard and Poor’s (A-).
Fitch’s news release: https://www.fitchratings.com/site/pr/1010330