S&P Upgrades Hawai`i Airport System Revenue Bond Rating To "A" Grade
07/01/11 - Standard & Poor’s Ratings Services has increased the Hawai'i Airport System’s revenue bond rating from an “A-” grade to an “A” grade, citing a stable future outlook. The ratings upgrade was based on S&P’s positive analysis of the airport system’s strong financial liquidity and increased certainty over the scope and size of its capital improvement plans.
Standard & Poor’s Ratings Services has increased the Hawai'i Airport System’s revenue bond rating from an “A-” grade to an “A” grade, citing a stable future outlook.
The ratings upgrade was based on S&P’s positive analysis of the airport system’s strong financial liquidity and increased certainty over the scope and size of its capital improvement plans.
“The stable outlook reflects our expectation that the capital program will not pressure the cost structure significantly more than forecast, that liquidity will remain strong, and that demand will not significantly deteriorate,” S&P writes. “Given the system's robust cash position and improving enplanement and tourism trends, we are unlikely to lower the rating over the next two years.”
Under the state Department of Transportation, the Airport System operates 15 airports statewide, including one large-hub, one medium-hub, three small-hubs and ten small airports.
“This show of our confidence in our airport system is an encouraging sign for Hawai'i’s economic recovery,” said Governor Neil Abercrombie. “We are continuing to improve our airports to ensure the public’s safety and so the people of Hawai'i can feel proud of their public spaces.”
In issuing the upgrade, S&P identified the following as positives of the airport system:
· Long-standing practice of maintaining a strong liquidity position
· Greater certainty regarding the scope and size of the capital improvement plan
· Monopolistic position and very high essentiality for transport within the state, serving a unique travel market with no significant concentration of carriers
· Moderately low overall debt combined with a good mix of capital program funding sources.
For
more information or for a copy of the ratings report, please visit the Standard
& Poor’s website at www.standardandpoors.com or contact
the state Dept. of Transportation Public Affairs Office
at (808) 587-2160 or via e-mail at dotpao@hawaii.gov.
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