KBRA Assigns AA Rating with Stable Outlook to Fort Wayne-Allen County Airport Authority General Obligation Bonds of 2021 and Tax-Exempt Private Activity General Obligation Bonds of 2021 | Financial Buzz

KBRA Assigns AA Rating with Stable Outlook to Fort Wayne-Allen County Airport Authority General Obligation Bonds of 2021 and Tax-Exempt Private Activity General Obligation Bonds of 2021

Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA with a Stable Outlook to the Fort Wayne-Allen County Airport Authority (Fort Wayne, Indiana) General Obligation Bonds of 2021 and Tax-Exempt Private Activity General Obligation Bonds of 2021.

Key Credit Considerations

KBRA continues to monitor the direct and indirect impacts of the COVID-19 virus. Click here to access KBRA’s ongoing research on the topic. The ratings were assigned because of the following key credit considerations:

Credit Positives

  • General obligation pledge with stable and growing tax base provides strong source of bond repayment.
  • Sizable unrestricted reserves, low leverage, and ongoing tax support position the airport well to weather a potentially slow post-pandemic air market recovery.

Credit Challenges

  • Timeline for post-pandemic passenger activity recovery remains uncertain and a weak trajectory could weigh negatively on financial performance.
  • Economic downturn accompanied by property tax base decline may reduce revenues available for operations.

Rating Sensitivities

For Upgrade

  • Acceleration of growth and diversification of the District’s economic base.

For Downgrade

  • Population loss and tax base erosion.
  • Significant deterioration in unrestricted reserves and liquidity.

To access ratings and relevant documents, click here.

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) 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 pursuant to the Temporary Registration Regime. 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.

Contacts

Analytical Contacts

Peter Scherer, Associate Director (Lead Analyst)

+1 (646) 731-2325

peter.scherer@kbra.com

Harvey Zachem, Managing Director

+1 (646) 731-2385

harvey.zachem@kbra.com

Jozelle Cox, Senior Analyst

+1 (646) 731-1227

jozelle.cox@kbra.com

Karen Daly, Senior Managing (Rating Committee Chair)

+1 (646) 731-2347

karen.daly@kbra.com

Business Development Contact

William Baneky, Managing Director

+1 (646) 731-2409

william.baneky@kbra.com

James Kissane, Senior Director

+1 (213) 806-0026

james.kissane@kbra.com