KBRA assigns a long-term rating of AA with a Stable Outlook to the Salt Lake City, Utah Airport Revenue Bonds, Series 2025A (AMT) and Airport Revenue Bonds, Series 2025B (Non-AMT). KBRA additionally affirms the long-term rating of AA for the City's outstanding Airport Revenue Bonds. The rating Outlook is Stable.

Key Credit Considerations

The rating action reflects the following key credit considerations:

Credit Positives

• Experienced management team, with a demonstrated ability to implement a complex, multi-year capital program.
• Economically diverse and growing air trade area supporting robust demand for business and leisure travel.
• Second Amended Airport Use and Lease Agreement and passenger demand sustain the Airport’s sound financial performance with strong debt service coverage and robust liquidity.

Credit Challenges

• Significant reliance on Delta Air Lines for enplanement activity.
• Elevated near term debt metrics, which are expected to improve over time through anticipated enplanement growth and limited future borrowing needs.

Rating Sensitivities

For Upgrade:

• Accelerated reduction in leverage beyond forecasted levels, resulting in lower airline costs and higher coverage.
• Material increase in liquidity following New SLC implementation.
• Significant, sustained growth in origination & destination traffic.

For Downgrade

• While not expected, additional borrowing beyond what is currently contemplated to complete the New SLC.
• A sustained, material reduction in passenger traffic stemming from structural changes to Delta’s hubbing strategy, weakened regional economic performance, or an exogenic shock to the airline industry.

To access ratings 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.

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1010298

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