Sac International Airport’s Bond Rating Dropped by Second Credit Reporting Company
June 25th, 2009 Categories: Sacramento Economy
Sacramento-area’s biggest construction project has hit a bit of financial turbulence, The two largest credit-rating companies recently downgraded bond ratings of Sacramento International Airport. The downgrades were done in anticipation of a $500 million airport bond sale this week.
Standard Poor’s Rating Service downgraded revenue bonds for Sacramento International Airport, from “stable” to “negative” late Wednesday. The credit-rating company issued an “A+” rating for the county’s $213 million airport system revenue bond, and an “A” rating for its $278 million airport system subordinate and passenger facility charge revenue refunding bonds. Both have a negative outlook.
“The ratings actions reflect our view of the fundamentally strong economic characteristics of the service area, despite weakness reflecting the general economic recession; a decline in passenger traffic and financial margins; and continued strong liquidity events,” according to a Standard Poor’s report.
Moody’s Investors Service downgraded the airport’s bond ratings, just as it plans to sell $500 million in bonds this week. Moody’s dropped the airport’s senior bond rating from A1 to A2, citing a sharp drop in passengers this year, as well as the recession and higher costs for airlines.
