Airport News:

Kansas City Receives Strong Bond Ratings

KANSAS CITY, Mo. – Aug. 14 – Fitch, Moody’s and Standard & Poor’s (S&P), major bond-rating organizations, have given Kansas City International Airport (KCI) strong bond ratings. The City of Kansas City, Missouri, Aviation Department is issuing bonds to refinance the $29.5 million outstanding 1997 revenue bonds and pay the cost of issuance. To aid in the rating process Aviation Department staff members gave briefings and tours to officials from Moody’s and S&P.

The ratings reflect KCI’s competitive airline costs, conservative capital improvement plan, no additional debt expected in the next five years and the rating agencies’ faith in airport management to proactively manage its financial operations amidst the challenging economic environment facing the domestic airline industry and the resulting service cuts. Also cited were the airport’s solid market position with no significant competition within 170 miles, diverse and stable air carrier base and strong and diverse local economy.

“We are proud of the strong ratings given by the rating agencies,” said Director of Aviation Mark VanLoh. “Given the economic climate we thought it would be a good idea to invite the agencies to KCI to receive presentations from us and to tour the airport. Our ongoing efforts and the personal touch seem to have paid off.”

Fitch assigned an A+ underlying long-term rating to the Aviation Department’s approximately $30 million General Airport Revenue Bonds (GARBs) Series 2008A, an A+ on the approximately $200 million in outstanding airport revenue bonds and it’s a on the approximately $117 million outstanding 2001A passenger facility charge bonds.

Moody's Investors Service has assigned an A1 underlying rating to the 2008 GARBs. Moody’s is also affirming the A1 underlying rating on the airport’s parity senior revenue bonds outstanding in the amount of $169.9 million, the A2 rating on the outstanding subordinate revenue bonds in the amount of $54.0 million, and the A3 rating on the outstanding passenger facility charge (PFC) revenue bonds. 

S&P assigned an A+ rating to the 2008A GARBs, A+ to the outstanding GARBs, A on outstanding senior revenue bonds, A on outstanding subordinate revenue bonds, and A on outstanding PFC bonds.

The Kansas City Airport System is an enterprise fund department of the City of Kansas City, Missouri, and is supported wholly by airport user charges. No general tax fund revenues are used for the administration, promotion, operation or maintenance of the airports in the system.