KBRA Assigns AA Rating with Stable Outlook for Dallas Fort Worth International Airport Joint Revenue Bonds

KBRA assigns the long-term rating of AA with a Stable Outlook for the Dallas Fort Worth International Airport Joint Revenue Refunding Bonds Taxable Series 2023A, Joint Revenue Refunding and Improvement Bonds Series 2023B (Non-AMT), and Joint Revenue Refunding Bonds Series 2023C (AMT).

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

• Strong management team has demonstrated an ability to effectively deal with the complexities of running a major U.S. airport.
• Growing population and economic base support origin and destination (O&D) traffic.
• Significant non-airline activity diversifies revenues and provides source of discretionary capital funding.

Credit Challenges

• High debt levels on per enplanement basis.
• High concentration of American Airlines as primary DFW carrier.
• Connecting traffic is a significant component of overall enplanement activity.

Rating Sensitivities

For Upgrade

• Ongoing population growth and strong local economic performance that results in O&D enplanement increases, and elevated rental car, parking, and concession revenues, as debt is amortized.
• Timely completion of planned capital projects, with lower than anticipated related airline costs.

For Downgrade

• While highly unlikely, the reduced importance of DFW as an American Airlines hub.
• Debt metrics increase to levels significantly more than what is currently forecast.

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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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.

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