JACKSONVILLE, Fla — The Jacksonville Aviation Authority said the three credit rating agencies, Moody’s Ratings, S&P Global Ratings, and Kroll Bond Rating Agency, LLC (KBRA), are viewing the authority’s financial outlook as stable as it seeks a $230 million bond issuance for the construction of Concourse B at Jacksonville International Airport. JAA said the positive ratings of A1, A+, and AA are expected to help the authority to issue the bonds at more favorable rates, lowering its costs.

In a release JAA said, some of the key positive indicators for KBRA’s AA rating include “the Authority’s strong financial profile with high historical debt service coverage and outstanding liquidity, a large and growing market supported by military, business, and tourism demand, and a manageable capital program.” The A1 rating from Moody’s was attributed to the “airport’s dominant market position as the primary commercial service airport for Northeast Florida, supported by a large and growing origin‑and‑destination service area with limited nearby competition...The stable outlook reflects expectations that the JAA will maintain strong debt service coverage above 3.0x and liquidity levels above 600 days cash on hand while completing the Concourse B project without material cost overruns or delays.” S&P gave an A+ rating due to “the stable outlook reflects our expectation that the authority will maintain healthy financial metrics that are in line with the current forecast, supported by generally positive enplanements trends and no additional debt needs.”

“These ratings signify the strong financial position of the JAA,” said JAA CEO Mark VanLoh. “This allows us to finance projects that matter to the Northeast Florida community, such as the construction of Concourse B. Not only will it bring additional gates which are desperately needed, but new customer service amenities and great dining options for travelers.”

“The strength of management, the current status of the Concourse B project, and the Authority’s strong financial metrics are likely factors these agencies considered while issuing their guidance,” said JAA CFO Ross Jones. “We look forward to going out to the bond market and securing financing for the completion of our largest construction project in the last 20 years.”

JAA added that with the ratings in place, the authority will look for financing in the open bond market for Concourse B construction.

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