Standard and Poor's Ratings Services (S&P) raised its long-term rating to 'AA-' from 'A+' on Phoenix Civic Improvement Corporation's (CIC) senior-lien general airport revenue bonds (GARBs) and raised its long-term rating to 'A+' from 'A' on the corporation's junior-lien GARBs, issued on behalf of Phoenix Sky Harbor International Airport (PHX). S&P also raised its rating to 'A' from 'BBB+' on the CIC's rental car facility charge (CFC) revenue bonds, issued on behalf of PHX to fund projects related to PHX's consolidated rental car center (CONRAC). This returns both the GARB and CONRAC bond ratings to their pre-pandemic levels. Both credits have stable outlooks.
“These upgraded bond ratings reinforce what we already know about Sky Harbor – it is a well- managed and strong economic engine for the area," Mayor Kate Gallego said. “The health and outlook of our airport continues to show how Phoenix has resoundingly bounced back from the pandemic."
S&P expects the airport will maintain steady financial results and a strong liquidity position, noting that passenger recovery and enplanement trends have been steadily recovering which they believe is sustainable, and expect the airport's market position to allow it to maintain a strong financial position.
The ratings reflect the airport's limited competition in the local market and large, and growing, origination and destination base. The ratings also reflect the high quality of financial management of the airport and their proven track record of meeting, or exceeding, financial targets as well as a willingness and ability to adjust budget and capital plans to maintain financial strength in times of stress.
“I am incredibly proud of our dedicated City of Phoenix Aviation team who enabled our successful recovery from arguably the most extreme downturn in modern aviation history," said Director of Aviation Services, Chad Makovsky. “We also owe a debt of gratitude to the airlines and our other business partners for their constant support of our airport through the pandemic. Thanks to our partners, wise financial management, and the flying public who have come back
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