WARWICK, RI — T.F. Green International Airport’s strong balance sheet liquidity, increasing nonstop routes, lack of political interference, and competitive cost per passenger contributed to Fitch upgrading the TF Green bond rating from ‘BBB+’ to ‘A-’.
Today, the Rhode Island Airport Corporation, which manages the airport, shared the upgrade by Fitch Ratings on about $57 million of outstanding airport revenue bonds, issued by the Rhode Island Commerce Corporation on behalf of the Rhode Island Airport Corporation.
Fitch Ratings cited Rhode Island T.F. Green International Airport’s robust financial position, influenced by the factors cited, in its report upgrading the TF Green bond rating.
“We are thankful for Fitch Ratings affirmation of RIAC’s continued strong financial standing, as well as our solid relations with airlines, aviation stakeholders, and financial partners,” said Iftikhar Ahmad, President and CEO of the Rhode Island Airport Corporation. “It is especially satisfying to see everyone’s hard work reflected in improved bond ratings.”
It’s the third time this year that RIAC has received a revenue bond upgrade, with S&P Global upgrading RIAC’s long-term bond rating to ‘A’ in January, as well as upgrading its special facility bond rating from to ‘A’ in May of this year. Key credit strengths cited by S&P included RIAC’s:
- Very strong management and governance;
- Very strong liquidity and financial flexibility; and
- Very strong debt and liability capacity and a manageable capital improvement plan.
“This positive financial news reflects the efforts of those who have been investing to strengthen the long-term financial standing of the airport,” Jonathan Savage, Chair of RIAC’s Board of Directors. “As the third rating agency upgrade this year, RIAC continues to help our aviation-related economy grow and prosper which is an exceptional benefit to our state.”
Noting their rating rationale justifying the rating upgrade, Fitch also cited RIAC’s solid debt service coverage ratio, recent five-year extension of its lease and use agreement with six signatory airlines, now including Breeze Airways, which utilizes the airport as a base of operations for aircraft, corresponding flight crews, mechanics, and other support personnel, offering 15 nonstop routes from the airport.
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