Key Takeaways
- We expect the ratings on U.S. consolidated rental car facilities will remain stable, given the rebound in demand following the pandemic, supported by our view of forecast steady airline passenger traffic.
- S&P Global Ratings believes rental car facilities operators, which generally have broad availability to adjust customer facility charges, will continue to adjust rates to meet the needs of their systems without materially dampening demand.
- Demand is cyclical because rental car use is tied to business travel and tourism, and competition from transportation network companies, car sharing, or future mobility options could constrain rate-setting flexibility over time.
- Our analysis of fiscal 2023 financial metrics--including debt service coverage, debt to EBIDA, and liquidity--for U.S.-based customer facility charge revenue bond issuers--shows relatively stable performance that we anticipate will continue.
U.S. CONRACs' Credit Quality Is Comparable With, Or Higher Than, Pre-Pandemic Levels
Nearly five years on from the start of the pandemic in early 2020, the airport rental car market has largely recovered by most industry measures and remains a key component of the U.S. travel ecosystem. A large majority of customers and revenue (about 70%) of the major rental car companies are associated with airport locations. And while the largest segment of the broader rental car market always is exposed to shifts in consumer behaviors and competitive pressures, the relative convenience, value, and absence of mobility alternatives to the airport rental car market the underpin the credit quality of consolidated rental car facilities (CONRACs) that we rate. In fact, very closely tracking the recovery in U.S. air travel, demand performance for some CONRACs has even exceeded pre-pandemic levels. As a result, since the pandemic, S&P Global Ratings raised all but one of its ratings on CONRAC entities to pre-pandemic levels.
We view any potential drag on rental car demand caused by inflation and economic weakness as relatively benign and short-lived. Median debt service coverage (S&P Global Ratings-calculated), at 1.36x, and liquidity, at 21.6% of debt outstanding in fiscal 2023, continued to improve from pandemic lows, and we expect these metrics will improve. Operators have demonstrated meaningful financial flexibility through their ability to adjust rates or charge rental car companies contingent costs, to meet their needs despite the potential of fluctuating travel trends, fuel prices, or regulatory changes.
Many of the facilities that we rate are relatively new and, therefore, have limited capital needs. Nevertheless, the potential for a shift away from rental cars and toward alternatives such as ride-sharing or mass transit, as well as reduced business travel over the long term, could lead to diminished rental car activity and customer facility charge (CFC) revenue.
CONRAC Revenue Pledges Have Unique Credit Qualities
CONRAC revenue pledges have unique credit support that underlies their credit stability. CONRACs have superior on-airport locations and competitive positions, giving them a captive market for renting cars at airports across the U.S., with most being walkable from the airport terminal or a short trip via bus or people mover system. Like other concessions, rental car companies pay airport owners fees for the privilege of operating their business at the airport, mostly in the form of a share of gross revenue. In addition, to support the financing and operations of related infrastructure, rental car companies that operate on airport property are required to collect and remit CFCs, which essentially capture all car rentals derived from airport passengers. Almost all the rated CONRACs include a contingent payment, deficiency payment, or performance guarantees from rental car companies as part of their concession agreement with the airport. These supplemental payments could require rental car companies operating at the airport to fund any deficiency in CFC accounts to pay debt service in the event CFC revenue is insufficient. Although these payments have yet to be materially tested, we view them as supportive of the relatively high credit quality of the sector.
CONRACs are generally supported by comparatively good CFC rate-setting flexibility, with rate increases typically requiring only the airport's board of directors, the airport's CEO, or a CFC study suggesting a higher rate is needed to meet debt service payments. This feature enhances the credit strength of the sector, as we believe relatively inelastic demand allows for higher CFCs without materially lower demand, resulting in higher revenue. Although from 2019 through 2023, the median CFC for rated CONRACs was $6, inflated overhead expenses or weaker demand has created pressure to raise CFCs in the near term.
Some CONRACs have an open flow of funds where transfers can occur between the CFC revenue stream and the general airport funds. But most CONRAC systems retain excess CFC revenue in a CFC surplus account to bolster liquidity over time or to keep CFCs low. Table 2 highlights the use of these available liquidity accounts. These significant CFC surplus accounts played a material role in restoring credit quality following the pandemic, as several CONRACs relied on previously accumulated liquidity to meet expenses and debt service payments during lockdown. We expect that in the next few years, CONRACs will again build up CFC reserves. Of note, nearly half of the CFC entities we rate exclude or have immaterial operations and maintenance expenses (O&M), which simplifies and reduces their risk profile.
Table 1 details the core financial metrics we consider in our "Global Not-For-Profit Transportation Infrastructure Enterprises" criteria, published Nov. 2, 2020, and the ranges for our assessments. Our metrics focus on operating performance, and thus, calculations of net revenue available for debt service include operating and nonoperating revenue and exclude income statement line items such as nonrecurring grants and cash-basis carryover fund balances and coverage accounts.
Also, while our coverage calculation typically represents a comparison of net revenue and total senior and subordinated debt service obligations, the calculation can sometimes include other recurring obligations or adjustments we consider O&M-like or debtlike. Many CONRACs have no O&M expenses or have only immaterial O&M expenses, so we generally view unrestricted reserves to debt as the more important of the two measures for this sector.
Table 1
| S&P Global Ratings' transportation infrastructure enterprise criteria--financial metric ranges | ||||||
|---|---|---|---|---|---|---|
| Extremely strong | Very strong | Strong | Adequate | Vulnerable | Highly vulnerable | |
| Coverage (x) | >4.75 | 4.75-3.00 | 3.00-1.25 | 1.25-1.10 | 1.10-1.00 | <1.00 |
| Debt to net revenue (x) | <5.0 | 5.0-10.0 | 10.0-15.0 | 15.0-20.0 | 20.0-30.0 | >30.0 |
| Unrestricted days' cash on hand | >800 | 800-400 | 400-250 | 250-120 | 120-60 | <60 |
| Unrestricted reserves to debt (%) | >85 | 85-50 | 50-20 | 20-8 | 8-3 | <3 |
Table 2
| Medians for rated CONRAC special facilities | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Financial performance | |||||
| Total operating revenue ($000s) | 23,844 | 19,752 | 11,216 | 19,602 | 25,557 |
| Total debt service ($000s) | 12,805 | 12,180 | 10,321 | 11,592 | 11,997 |
| S&P Global Ratings debt service coverage (x) | 1.36 | 1.29 | 0.83 | 1.47 | 1.73 |
| Debt and liabilities | |||||
| Debt ($000s) | 150,140 | 152,330 | 153,995 | 155,615 | 159,092 |
| Debt to EBIDA (x) | 9.5 | 11.0 | 21.8 | 12.2 | 8.0 |
| Liquidity and financial flexibility | |||||
| Available liquidity ($000s) | 32,469 | 26,490 | 26,849 | 32,719 | 43,287 |
| Available liquidity to debt (%) | 21.6 | 19 | 15.5 | 18.8 | 25.6 |
| Operating metrics - special facility project | |||||
| Rental car transaction days | 4,881 | 4,246 | 2,316 | 4,486 | 5,586 |
| Annual CFC revenue ($000s) | 23,844 | 19,752 | 11,216 | 19,602 | 25,557 |
| CFC rate, if applicable (actual) ($) | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
Rental Car Activity Mirrors Air Travel Demand
Rental car special facilities located at U.S. airports have also seen a continued strong recovery in rental car transaction days. CONRAC activity levels are highly correlated with air travel demand and enplanements, and in general, rental car demand moves in lockstep with enplanements. However, this is not always the case, as historical performance at San Diego County Regional Airport Authority shows. Although enplanements recovered to 96% of 2019 levels as of fiscal 2023, rental car transaction days recovered to only 80% of 2019 levels. These numbers are a marked improvement from those seen during the depths of the pandemic, but we attribute the notable difference between air travel and rental car demand to the weaker comeback of inter-California business travel demand for rental cars and note this case is unique among rated CONRACs. Generally, rental car transaction days trail airport enplanement levels by 5%-10% for rated CONRAC entities, with a few outliers.
For more information, see "U.S. Transportation Infrastructure Airport Update: Air Travel Rides The Jetstream, For Now," published June 18, 2024, on RatingsDirect.
Electrifying Rental Car Fleets Has Yet To Spark
Rental car companies have initiated efforts to provide electric vehicles (EVs) to the market, in particular to meet regulatory targets on emissions reduction. However, costs and consumer hesitancy to rent EVs have dampened the widespread availability of EV rentals. In fact, many airports don't yet have adequate infrastructure to support rental car EVs, with rapid charging stations still being very costly to install. Nevertheless, we expect the trend toward more EV rentals will continue, and advances in charging infrastructure--including the expansion of fast-charging networks--are making it more convenient for renters in some markets.
However, many customers are still reluctant to rent an EV due to unfamiliarity and reliability concerns. Rental car companies report higher maintenance and repairs of EVs due to higher accident rates among new EV drivers. For example, in the last two years, Hertz added more than 60,000 EVs to its fleet, stating its intent to have 25% of its fleet be electric by the end of 2024. However, the operating results associated with this fleet were pressured by lower utilization (amid weaker-than-expected demand), higher maintenance expenses, and lower-than-expected residual values, leading the company to reduce its EV targets.
For more information on EV infrastructure in the U.S., see "U.S. States Jump Start Electric Vehicle Charging Infrastructure," published Sept. 21, 2023.
Consolidation And Concentration In Rental Car Companies Haven't Posed A Credit Risk
The airport rental car market is dominated by three major companies that combined account for approximately 95% of U.S. car rentals:
- Avis Budget Group (inclusive of Avis, Budget, and Zipcar brands),
- Enterprise Holdings (significantly the largest rental car company in the U.S. with Enterprise, Alamo, and National brands), and
- Hertz Global Holdings (inclusive of Hertz Dollar and Thrifty).
Rental car companies that operate at airports generally have strong pricing power and customer reach, given their captive market and varying price point offerings. Of note, even through a Chapter 11 bankruptcy during the pandemic, Hertz continued to operate at CONRACs and continued to pay rent, charge and collect CFCs, and remit that revenue to the CONRACs without material disruption. Because of the absence of competition and strong market positions associated with airport locations, we don't view the concentration in rental car companies as an inherent risk in our analysis.
Competition And New Legislation Persist, But We Expect Stability In Rental Car Transaction Days
We believe that many of the CFC pledged revenue streams and CONRACs we rate have strong market positions. The challenge for management teams will be navigating potential changes in consumer travel choices. We view transportation network companies (TNCs; such as Uber or Lyft) and other mobility solutions (such as mass transit systems or peer-to-peer car sharing) as posing moderate competition to this sector.
However, at this point, we believe that TNC usage at airports is stagnating, or has become sufficiently saturated that a further decrease in rental car transaction days at CONRACs is unlikely. Nonetheless, the peer-to-peer rental car market and other new mobility options, over time could affect the sector, and we'll continue to monitor this trend. In the past decade, many airports have also implemented ground transportation fees to charge TNCs that operate at the airport (drop-off fees, pick-up fees, or both) as a new revenue stream, which has slightly weakened the TNCs' competitive advantage. Other alternative forms of transportation that compete with on-airport rental cars are taxis, inter-city coaches, shuttle services, and public transportation.
We're monitoring new legislation that could affect CFC revenue streams across the U.S. and could further weaken the demand for rental cars. Hertz reports that more than 40 U.S. states charge either a rental car tax or fee. Many state legislatures have enacted laws imposing new rental car fees to help generate funds for transportation infrastructure or EV infrastructure. Should the costs of renting cars continue to rise, consumers could cut back their demand for car rentals and seek alternative transportation options.
Table 3
| 2024 CONRAC sector overview | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Issuer | Rating | Most recent fiscal year-end | Operating revenue ($000s) | CFC rate ($) | Rental car transaction days | Enplanements (000s) | DSC (x) | Debt to EBIDA (x) | Debt outstanding ($000s) | Available liquidity ($000s) | Available liquidity to debt (%) | Year built | ||||||||||||||
|
Bradley International Airport |
A/Stable | 6/30/2023 | 11,160 | 8.4 | 1,329 | 3,064 | 1.36* | 13.5 | 151,000 | 2,300* | 3.2* | 2022 | ||||||||||||||
| The comparatively new ground transportation center (GTC) project at Bradley International Airport will continue to attract a good base level of demand that we view as sustainable, given it is anchored by the facility's location at a medium-hub airport with a largely origin and destination (O&D) enplanement base serving Connecticut and portions of western Massachusetts. Although rental car transaction days trailed enplanement recovery percentages following the pandemic, both have materially returned to prepandemic levels. We expect the CFC pledge will continue to support strong coverage levels based on level annual CFC debt service (approximately $9.6 million). Following the completion of the GTC, the airport has no additional CFC-financed debt needs and and liquidity will be maintained at levels we consider generally strong (above 400 days' cash on hand and liquidity to debt above 3%). | ||||||||||||||||||||||||||
|
Chicago O'Hare International Airport |
BBB+/Stable | 12/31/2023 | 39,046 | 8 | 4,881 | 36,598 | 1.16 | 11.9 | 462,838 | 16,568 | 3.6 | 2018 | ||||||||||||||
| The rental car facility, which substantially opened in October 2018, is on the airport's northeast side and functions as a major multimodal transportation access point for the airport. The facility's strong market position is supported by the strength and size of O'Hare's O&D share of the Chicago market, which will support good demand for rental cars. Under terms of the rental car use and lease agreement, rental car companies using the facility pay annual facility rent, on a residual basis, to cover aggregate annual debt service, operating expenses, and other project costs that CFC collections do not cover. If the amount of total projected facility rent exceeds $18 million in any year, the city has agreed to raise the CFC rate such that the total annual facility rent will be equal to or below that level, while ensuring that the CFC collections and facility rent combined will meet the required fund deposits for the indenture flow of funds. Currently the $8 CFC rate is expected to remain in place until 2028, when facility rent reaches $18 million and the CFC rate is $8.25, unless actual rental car demand trends better than forecast. | ||||||||||||||||||||||||||
|
Portland International Airport |
A/Stable | 6/30/2023 | 16,863 | 6 | 3,216 | 7,825 | 1.82 | 8.9 | 150,140 | 32,469 | 21.6 | 2021 | ||||||||||||||
| The airport's operational recovery, as measured by passenger demand, and corresponding rental car demand, has lagged that of other large hubs and is weaker than national trends, largely due to weaker regional connecting traffic and some, albeit modest, exposure to international traffic. However, we believe this CONRAC has a good base of air travel demand and associated rental car activity as a result of the expanding Portland metropolitan area. CFC revenue has increased materially in the past several years due to an increase in the transaction-days cap to 10 days from four days effective July 2021. Overall, we expect recovering activity levels and CFC revenue will produce financial metrics consistent with a strong financial risk profile with no additional CFC debt needs. | ||||||||||||||||||||||||||
|
Hartsfield Jackson Atlanta International Airport |
A/Stable | 6/30/2024 | 38,940 | 5 | 7,579 | 53,776 | 1.04 | 5.8 | 142,196 | 19,613 | 13.8 | 2009 | ||||||||||||||
| The CONRAC, which opened in 2009, occupies an approximately 70-acre site. All companies providing rental car services at the airport use the facility. The rental car center (RCC) provides a 137,000-square-foot customer service center and approximately 8,700 spaces for ready and return car parking and associated service, maintenance, and storage facilities for an automated people-mover system known as the SkyTrain, which connects the RCC to the airport's passenger terminal facilities. We believe the relatively large O&D market, which is supported by favorable economic fundamentals of the Atlanta metropolitan area, supports robust rental car demand. We expect the city will maintain CFC financial metrics (S&P Global Ratings-calculated) consistent with a strong financial risk profile. Although we understand that the city has no plans to adjust the CFC rate, we believe the CONRAC has meaningful rate-setting flexbility. Any increase to the CFC rate, however, is subject to city council approval. There is approximately $101.2 million of CFC revenue bonds outstanding and about $41.1 million outstanding in a renewal and extension (R&E) fund loan paid from CFC revenue on a subordinate basis. No formal documents exist for the R&E loan. The city can elect to defer principal and interest payments if needed. If the city decides to defer payments to the R&E fund, it will accrue interest on the loan balance outstanding. DSC, per our calculations that exclude the inclusion of a coverage fund balance and include operating expenses related to the RCC paid from CFC revenues, is 1.0x including the R&E loan payments and 1.5x excluding them. | ||||||||||||||||||||||||||
|
Hawaii Airport System |
A+/Stable | 6/30/2023 | 65,577 | 4.5 | 14,534 | 19,505 | 2.69 | 6.2 | 403,300 | 97,709 | 24.2 | Multiple | ||||||||||||||
| Our rating incorporates the diversification of the revenue pledge, including rental car activity at six airports across the system with no airport contributing more than about 40% of total CFC revenue, as well as Hawaii's historical status as the most active rental car market in the U.S. as measured by transaction days. Because of high demand in rental car activity, we expect Hawaii Airport System will maintain CFC financial metrics consistent with a strong financial risk profile. We believe the facility's liquidity position provides support to weather unanticipated near-term activity declines, potentially for periods of weak tourist acticty in the event of a national economic downturn. This system has comparatively elevated exposure to an international overseas passenger segment, that, although accelerating recently, has been much slower to recover than the domestic passenger segment due to pandemic-related health and safety requirements and protocols. | ||||||||||||||||||||||||||
|
Houston Airport System |
A/Stable | 6/30/2023 | 16,075 | 4 | 2,418 | 28,945 | 1.3 | 3.3 | 52,515 | 55,143 | 105 | 2003 | ||||||||||||||
| Houston Airport System's George Bush Intercontinental Airport (IAH) CONRAC is supported by meaningful rate-setting flexibility with operations at a large-hub airport in a favorable expanding economic area. The IAH rental car center requires users to use a shuttle to access the rental car companies away from the main airport terminal. We understand that the city has no plans to adjust the CFC rate and has no additional debt needs. Given the facility has been open comparatively longer than other CONRACs we rate, the bonds have seen significant ammortization and we expect the mature system will continue to perform well. | ||||||||||||||||||||||||||
|
Massachusetts Port Authority |
A/Stable | 6/30/2024 | 33,158 | 6 | 5,526 | 20,838 | 3.01 | 3.3 | 110,715 | 65,110 | 58.8 | 2013 | ||||||||||||||
| The on-airport consolidated rental car facility project at Boston Logan International Airport benefits from the relatively large O&D enplanement market within the economically vibrant Boston MSA. The CONRAC, which opened in 2013, occupies an approximately 49-acre site. It consists of a four-level garage that houses 11 rental car operators, with a 120,000-square-foot customer service center and approximately 3,200 total spaces for ready and return car parking and storage and is served by bus shuttles to the terminals with access to other ground transportation options. Securing the bonds is an effective gross lien on a $6-per-day rental car CFC as CFCs do not pay operatings and maintenance costs associated with the consolidated rental car facility. There is no cap to the CFC rate, and it can be changed with the approval of Massport's board. The financial structure also benefits from Massport's ability to levy additional fees on rental car operators through a contingent rent provision in the CFC trust agreement, which also pledged a security, should CFC revenue be insufficient. | ||||||||||||||||||||||||||
|
New Orleans International Airport |
A/Stable | 12/31/2023 | 14,928 | 7.95 | 1,904 | 6,367 | 1.3 | 15.5 | 82,565 | 16,875 | 20.4 | 2009 | ||||||||||||||
| The CONRAC is located across the airfield from the main passenger terminal and is accessed by shuttle service, presenting some operational risk. However, we view the facility's location in New Orleans as beneficial due to unique tourist events and attractions coupled with the airport's solid enplanement base that supports rental car activity. Rental car transaction days recovered to approximately 86% of pre-pandemic levels for calendar 2023, but are behind the airport's 99% enplaned passenger recapture rate for the same period. Debt service expense grows from $3.9 million in 2024 to $7.6 million in 2026 (maximum annual debt service) and remain relatively flat through maturity. This could result in reduced DSC if CFC revenue growth is not sufficient. The director of aviation has the authority to adjust the CFC rate without board approval as long as the rate is no higher than $10; we view this favorably. In addition, the annual CFC rate review includes a mandate to set rates to meet bond covenants a year in advance; this includes charging contingent rent. | ||||||||||||||||||||||||||
|
Phoenix Sky Harbor International Airport |
A/Stable | 6/30/2023 | 48,058 | 6 | 8,010 | 23,623 | 1.44 | 9.5 | 279,340 | 40,365 | 14.5 | 2006 | ||||||||||||||
| Phoenix Sky Harbor's (PHX) CONRAC supports one of the largest rental car markets in the U.S. and is connected to the terminal via the Sky Train. PHX has a large and expanding O&D enplanement base that is bolstered by the metropolitan statistical area's strong leisure travel market, contributing to a long-term trend of rising transaction days. Considering the CONRAC has no additional borrowing plans and generally stable and predictable expenses (which we include in our calculation of net available revenue as administrative costs plus a transportation operations and maintenance reimbursement transferred to the airport), we expect the CFC facility will likely achieve financial metrics consistent with a strong financial risk profile with DSC above 1.25x. The CFC facility's financial risk profile was bolstered by the airport's receipt of $344.6 million in federal stimulus funds, of which PHX applied about $19.4 million to CFC bond debt service in fiscal years 2021 and 2022. | ||||||||||||||||||||||||||
|
Rhode Island Airport Corp. |
A/Stable | 6/30/2023 | 8,410 | 6 | 884 | 1,659 | 0.89 | 16.3 | 72,753 | 25,558 | 35.1 | 2010 | ||||||||||||||
| In 2010, the airport's intermodal facility opened, consolidating rental car operations, commuter rail access, ride-sharing drop-off zone, and parking into a single facility. Despite lagging national recovery trends, Rhode Island T.F. Green International Airport has maintained positive demand growth in recent years that supports the special-facility revenue bonds. The rating also reflects our expectation that the airport corporation will maintain strong financial metrics, supported by ongoing recovery in air traffic demand and rental car transactions days, in part due to additional air service routes and a scheduled CFC rate increase in late 2024. Considering that the corporation has no additional debt plans, we believe it has sufficient debt capacity to maintain its strong financial metrics. | ||||||||||||||||||||||||||
|
San Antonio International Airport |
A/Stable | 9/30/2023 | 12,695 | 5.5 | 2,337 | 5,425 | 1.36 | 10.6 | 117,915 | 20,351 | 17.3 | 2018 | ||||||||||||||
| San Antonio's on-airport CONRAC benefits from serving an airport with historically strong enplanement growth with a primarily O&D passenger market and an expanding service area economy that, in turn, generates air travel demand, visitors, rental car utilization, and CFC transaction days. The rate covenant requires that the CFC be reviewed and adjusted as necessary to ensure 1.25x DSC on the bonds. We expect that CFC revenues should generate DSC (S&P Global Ratings-calculated) above 1.5x, which we consider strong. Our DSC calculations exclude the use of nonreoccurring revenue from the rolling coverage fund or portions of the supplemental reserve fund, which are permitted uses to meet the CONRAC rate covenant requirement. The CFC rate is $5.50 per transaction day and the aviation director can raise the CFC rate at any time; rate increases do not require city council approval. | ||||||||||||||||||||||||||
|
San Diego County Regional Airport Authority |
A-/Stable | 6/30/2023 | 34,375 | 9 | 5,007 | 11,868 | 1.09 | 12.3 | 275,685 | 25,100 | 9.1 | 2016 | ||||||||||||||
| The rental car facility, which substantially opened 2016, is on the airport's northeast side and benefits from the airport's historically large primarily O&D enplanement base supporting rental car demand. However, airport management cannot unilaterally increase the CFC because it is capped at $9 per state statute, which has led to weaker DSC and limited rate-setting flexibility compared to peers. More specifically, we expect the facility will maintain strong debt to EBIDA, very strong liquidity, and only a minimum of 1x coverage as a result of the break-even nature of its rental car lease agreement and additional pledge of supplemental consideration payments from CONRACs to cover revenue shortfalls. | ||||||||||||||||||||||||||
|
Tampa International Airport |
A/Stable | 9/30/2023 | 40,885 | 5.95 | 6,974 | 11,561 | 1.54 | 8.3 | 338,970 | 46,817 | 13.8 | 2018 | ||||||||||||||
| The facility was substantially completed in October 2017 and became fully accessible in February 2018 with the opening of the automatic people mover (APM). It includes a four-level, 2.6 million square-foot facility for rental car operations, with an additional 75,000 square-foot facility to house four vehicle maintenance service centers. As well, the 1.4 mile APM connects the main terminal to the facility. The facility is supported by the favorable service area economic fundamentals in the Tampa metro area, which will support robust air travel and subsequent rental car demand given good economic activity. We believe stable demand and adequate rate-setting flexibility will enable the facility to continue generating strong DSC. There are no planned additional CFC-supported bonds. | ||||||||||||||||||||||||||
| *Pro forma fiscal 2024 used to reflect our forward-looking view, given transition period from opening. DSC--Debt service coverage. | ||||||||||||||||||||||||||
This report does not constitute a rating action.
| Primary Credit Analyst: | Kenneth P Biddison, Englewood + 1 (303) 721 4321; kenneth.biddison@spglobal.com |
| Secondary Contact: | Kurt E Forsgren, Boston + 1 (617) 530 8308; kurt.forsgren@spglobal.com |
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