Fitch affirms ‘A’ rating for Airport Authority; Rating outlook remains stable
Tuesday, October 15, 2019
MEMPHIS, Tenn. (October 11, 2019) – Fitch Ratings has affirmed the Memphis-Shelby County Airport Authority’s (MSCAA’s) ‘A’ rating on the authority’s outstanding $355 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, sound financial operations, and the presence of FedEx’s massive cargo operations.
The ratings agency also cited the airport's passenger growth, which exceeded 2.26 million enplanements in Fiscal Year 2019. “Enplanement” is a common airport industry term that refers to a passenger getting on a plane. The number of enplanements represents half the total number of passengers, since it does not account for passengers who are deplaning. MEM experienced a 5.13% increase in passenger growth in FY19 compared to the previous fiscal year, marking the 5th consecutive fiscal year of passenger growth for the airport.
“Our finance staff has worked tirelessly to maintain the Airport Authority’s solid financial foundation, and in doing so, has helped position our airport for a very bright future,” said Scott Brockman, MSCAA President and CEO.
The Airport Authority also maintains strong credit ratings from Moody’s Investor Service (A2/Stable), Standard and Poor’s (A/Stable), and Kroll (A+).
Fitch’s news release: http://bit.ly/memfitch2019.