Fitch assigns positive outlook to Philadelphia airport bonds

‘A’ rating on USD 1.45 billion debt
2023-12-27
/
/ New Delhi
Philadelphia_International_Airport_aerial
Fitch assigns positive outlook to Philadelphia airport bonds

In the past three months the airport has received a positive change to its rating

With improved liquidity position and strong expense management, Philadelphia International Airport has received a positive outlook and an ‘A’ rating on USD 1.45 billion of debt by Fitch Ratings.
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Philadelphia International Airport’s (PHL) revenue bonds have been assigned with a positive outlook and affirmed an ‘A’ rating on USD 1.45 billion of debt by Fitch Ratings, a leading financial ratings agency.

In a press statement, PHL says this is the second time in the past three months that the airport has received a positive change to its rating. In June, New York-based analysis firm Standard & Poor’s (S&P) assigned an “A+” rating with a stable outlook on PHL’s general airport revenue bonds, a two notch upgrade from the “A-“ rating PHL received in 2021.

The report cites PHL’s leverage remains low for an airport in the ‘A’ category. It adds that the airport has a large and stable service area with solid O&D traffic. 

Atif Saeed

Atif Saeed

“Fitch moving PHL’s outlook from stable to positive speaks to our strong management throughout the pandemic and positive trajectory on the heels of a new airline agreement. We look forward to our continued financial recovery,” says CEO Atif Saeed.

According to the report, PHL has seen improved liquidity position and strong expense management. Fitch notes that the strong airline agreement at PHL “in conjunction with the importance of American Airlines’ market share supports the current rating level.” 

Fitch cited the airport’s new airline use agreement which “incorporates enhanced cash reserving mechanisms supportive of the airport’s upcoming large capital plan (CDP), and demonstrates airline carriers’ ongoing commitment to serving the airport and its service area.”

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