Fitch Rates Houston Airport, TX Rfdg Bonds 'A+' & Affirms Outstanding Sub Lien ...
NEW YORK--( BUSINESS WIRE )--Fitch Ratings assigns an 'A+' rating to the city of Houston, TX's $450 million airport system subordinate lien revenue refunding bonds, series 2011A and 2011B, issued on behalf of Houston Airport. Fitch also affirms its 'A+' rating on $2 billion of outstanding airport system subordinate lien revenue bonds. The Rating Outlook on all subordinate lien bonds is Stable.
The airport also has approximately $450 million of series 2009A senior lien revenue bonds outstanding; Fitch does not rate the airport's senior lien revenue bonds.
Rating Rationale:
--Broad economic base of the primary service area supporting over 24 million annual enplanements, with strong historical demand for air carrier service at both Houston Intercontinental (IAH) and William P. Hobby (Hobby) airports.
--Historically strong financial results evidenced by coverage levels at or above 1.7 times (x), with sound reserve balances with 720 days cash on hand in 2010.
--Rising but relatively competitive airline costs, with limited future debt requirements to support the airport system's capital program.
--Credit concerns include the dominant positions held by Continental Airlines (Continental) at IAH and Southwest Airlines (Southwest) at Hobby, with exposure to fluctuations in enplanement levels due to 49% connecting traffic and the compensatory nature of the system's largest cost center. Continental is rated 'B-' with a Positive Outlook and Southwest is rated 'BBB' with a Negative Outlook by Fitch. However, Fitch does not expect the recent merger of United and Continental as well as the proposed Southwest acquisition of AirTran to have material near-term impacts to the service levels at the airport system.
--The airport system has relatively elevated debt levels compared to its peers, with 10.5x net debt/CFADS in 2010. Fitch expects declines in margins and coverage levels in the near term projection period, in part due to increasing debt service requirements.
Key Rating Drivers:
--Healthy margins and coverage levels as senior lien debt service comes online will be integral in maintaining the current rating.
--Fitch recognizes that recent changeovers in management bring considerable experience and knowledge to the Houston Airport System, and expect that the airport will continue to manage its cost profile while executing on its current capital plan.
Houston Texas Airports - News
NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns an 'A+' rating to the city of Houston, TX's $450 million airport system subordinate lien revenue refunding bonds, series 2011A and 2011B, issued on behalf of Houston Airport. Fitch also affirms its 'A+'
The airport security bill's sponsor Rep. David Sampson says his legislation has already had an effect on TSA modifying its procedures for children. TSA had previously threatened to sue if the bill passed. AUSTIN, Texas (AP) - Now that the final touches
Former Hampshire High School star Jake Goebbert is playing for the Houston Astros organization at Class AA Corpus Christi, Texas. | PHOTO COURTESY CORPUS CHRISTI HOOKS Earlier this season,
AUSTIN -- Another episode of Texas vs. the feds is unfolding in the waning days of the special legislative session over a bill that would prohibit federal TSA agents from conducting intrusive security searches at Texas airports. Gov.
A barbecue pit, sparks from bullets during hunters' target practice and a homeless man's campfire have been blamed for fires in Austin and towns an hour's drive from Houston, despite widespread and well-publicized burn bans. On Saturday, the Texas
Fitch Rates Houston Airport, TX Rfdg Bonds 'A+' & Affirms ...
Dépêches Fitch Rates Houston Airport, TX Rfdg Bonds 'A+' & Affirms Outstanding Sub Lien Revs; Outlook Stable
Dépèche transmise le 22 juin 2011 par Business Wire
NEW YORK--( BUSINESS WIRE )--Fitch Ratings assigns an 'A+' rating to the city of Houston, TX's $450 million airport system subordinate lien revenue refunding bonds, series 2011A and 2011B, issued on behalf of Houston Airport. Fitch also affirms its 'A+' rating on $2 billion of outstanding airport system subordinate lien revenue bonds. The Rating Outlook on all subordinate lien bonds is Stable.
The airport also has approximately $450 million of series 2009A senior lien revenue bonds outstanding; Fitch does not rate the airport's senior lien revenue bonds.
Rating Rationale:
--Broad economic base of the primary service area supporting over 24 million annual enplanements, with strong historical demand for air carrier service at both Houston Intercontinental (IAH) and William P. Hobby (Hobby) airports.
--Historically strong financial results evidenced by coverage levels at or above 1.7 times (x), with sound reserve balances with 720 days cash on hand in 2010.
--Rising but relatively competitive airline costs, with limited future debt requirements to support the airport system's capital program.
--Credit concerns include the dominant positions held by Continental Airlines (Continental) at IAH and Southwest Airlines (Southwest) at Hobby, with exposure to fluctuations in enplanement levels due to 49% connecting traffic and the compensatory nature of the system's largest cost center. Continental is rated 'B-' with a Positive Outlook and Southwest is rated 'BBB' with a Negative Outlook by Fitch. However, Fitch does not expect the recent merger of United and Continental as well as the proposed Southwest acquisition of AirTran to have material near-term impacts to the service levels at the airport system.
--The airport system has relatively elevated debt levels compared to its peers, with 10.5x net debt/CFADS in 2010. Fitch expects declines in margins and coverage levels in the near term projection period, in part due to increasing debt service requirements.
Key Rating Drivers:
--Healthy margins and coverage levels as senior lien debt service comes online will be integral in maintaining the current rating.
Houston Texas Airports - Bookshelf
Airports in Houston, Texas, George Bush Intercontinental Airport
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Houston Airport System
Air services network of Houston, Texas, comprising of three airports, George Bush Intercontinental Airport, William P. Hobby Airport, and Ellington Field.
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