Top Credit Rating Agency: JAA’s Financial “Outlook is Stable”
Diversified Revenue Stream and Stable Market Cited as Strengths
JACKSONVILLE, January 26, 2010 - The Jacksonville Aviation Authority reported during yesterday's board of director's meeting that Standard & Poor's Rating Services has affirmed an investment grade ‘A-' rating on JAA revenue bonds.
The credit rating agency said its rating is based on Jacksonville International Airport's role as an origin and destination airport as well as the authority's sound financial operations.
"Despite these challenging economic times, JAA continues to maintain financial stability," said JAA Chair Deborah Pass-Durham. "This latest rating from S&P is further validation of the financial and operational steps the JAA has taken over the past couple of years to meet the decline in air travel."
Working in the JAA's favor is the authority's diverse airline mix with no one airline constituting more than 25% of enplanements, S&P noted. Also, good liquidity and revenue diversity from airlines, parking, and concessions like rental cars, were cited as favorable factors.
As of January 1, 2010, JAA has outstanding debt of $209,880,000. The debt is composed of $47.6 million for Series 2003 refunding bonds; $123.3 million for 2006 revenue bonds; $38.9 million for 2008 revenue note. All of the Authority's debt is fixed.