Airport Assigned Long-term Investment Ratings to Fund Terminal Expansion Construction
Fresno Yosemite International Airport Assigned Long-term Investment Ratings to Fund Terminal Expansion Construction
Fresno, CA (May 1, 2023) – Fresno Yosemite International Airport (FAT) received an assigned ‘A’ long-term investment rating with stable outlook from S&P Global Ratings (S&P). At the same time Kroll Bond Rating Agency (KBRA) assigned FAT an ‘A+’ long-term investment rating with a stable outlook. The investment ratings by S&P and KBRA are assigned to the 2023 series airport revenue bond proceeds to fund a portion of construction costs for FAT’s new terminal expansion project.
S&P Global Ratings’ credit overview cites FAT’s strong management and governance supported by a track record of meeting and exceeding financial goals and managing risk through prudent financial oversight resulting in an ‘A’ rating. According to Kroll Bond Rating Agency, key credit considerations include healthy operating performance, supported by a favorable mix of airline and non-airline revenues resulting in the agency’s assigned ‘A+’ investment rating for FAT.
“To receive ‘A’ range investment ratings reflects the agencies’ confidence in Fresno Yosemite International Airport’s solid financial portfolio and enhances marketability to issue bonds for a major terminal expansion project,” said Director of Aviation Henry Thompson. “With other funding sources in place, our 2023 bond issuance is expected to be nearly half the $150 million needed to fund construction. We are excited to begin building for the future to better serve our travelers for years to come.”
S&P and KBRA credit analyses reflect FAT’s positive enplanement trends, strong enplanement growth and recovery exceeding national levels. A very strong liquidity position and solid pro-forma debt service coverage, which is expected to remain strong with the series 2023 bond issuance.
NOTE: Press Release links to S&P Global Ratings and Kroll Bond Rating Agency announcements.
Fresno Yosemite International Airport – Fresno Yosemite International Airport (FAT) is one of the largest drivers in economic activity in the Central San Joaquin Valley. Domestic and international carriers serving FAT offer Valley travelers daily nonstop flights to Chicago (Seasonal), Dallas Fort Worth, Denver, Las Vegas, Los Angeles, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, Seattle, and Guadalajara, León, and Morelia in Mexico.
Fresno Yosemite International Airport and Fresno Chandler Executive Airport are municipally owned entities operating as a self-supporting enterprise.
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