Credit review outlines financial outlook with estimated $701 million in airport revenue bonds
An aerial view of Minneapolis-St. Paul International Airport. Courtesy of the Metropolitan Airports Commission
MINNEAPOLIS-ST. PAUL, Minn. — S&P Global Ratings and Fitch Ratings assigned and affirmed strong credit ratings for the Metropolitan Airports Commission (MAC) in advance of an estimated $701 million bond issuance to support capital improvements at Minneapolis-St. Paul International Airport (MSP). The MAC owns and operates MSP and six general aviation airports in the Twin Cities.
S&P Global Ratings and Fitch Ratings both assigned an ‘A+’ long-term rating to the MAC’s series 2024A (non-AMT) and series 2024B (AMT) subordinate airport revenue bonds.
“Optimizing financial performance and investing to sustain growth is one of the MAC’s key focus areas of our strategic plan,” said Brian Ryks, CEO of the MAC. “The ratings affirm our strong financial outlook and creditworthiness, even as we embark on an ambitious long-term plan to support growing air service demands and facility improvements that provide a best-in-class passenger experience.”
S&P Global Ratings also affirmed its ‘AA-’ long-term rating on MSP's senior airport revenue bonds and its ‘A+’ long-term rating on the airport's outstanding subordinate airport revenue bonds. The outlook on all ratings is stable. In identifying key credit strengths, S&P Global Ratings noted that MSP is the largest airport in the region and serves as an important connecting hub for Delta Air Lines. Further, according to S&P, the MAC has very strong debt-to-net-revenue and overall liquidity, and the MAC has extremely strong management and governance with a history of successfully managing large capital programs.
Fitch Ratings also affirmed its ‘AA-’ rating on the MAC’s senior airport revenue bonds and ‘A+’ rating on subordinate airport revenue bonds. Fitch noted that one of the key drivers for the ratings is the fact that MSP is a key commercial transportation hub in the Upper Midwest with no nearby competition. Additionally, Fitch cited MSP’s competitive cost structure and supporting airline agreements, and the MAC’s well-managed capital spending with many future projects approved by airline carriers.
MSP is the 18th busiest airport in the United States by passenger traffic based on the latest annual data by Airports Council International. The estimated $701 million in airport revenue bonds will likely be sold in late July to fund several projects on the near horizon, including the expansion of Concourse G (Gates 8-13), the Terminal 2 North Expansion, a new public safety and security center, and Terminal 1 concourse and gate hold modernization projects.
In May, the MAC board approved the MSP Airport 2040 Long-Term Plan outlining future yet-to-be-funded projects to improve the terminals, parking facilities and the airfield to accommodate passenger growth and other changes in aviation activity over the next two decades.
About The Metropolitan Airports Commission (MAC)
The Metropolitan Airports Commission (MAC) owns and operates one of the nation’s largest airport systems, including Minneapolis-St Paul International (MSP) and six general aviation airports. The MAC’s airports connect the region to the world and showcase Minnesota’s extraordinary culture to millions of passengers from around the globe who arrive or depart through MAC airports each year. Though a public corporation of the state of Minnesota, the organization is not funded by income or property taxes. Instead, the MAC’s operations are funded by rents and fees generated by users of its airports. For more information, visit www.metroairports.org.
PAVIX: Proven Winner for All Airport Concrete Infrastructure
International Chem-Crete Corporation (ICC) manufactures and sells PAVIX, a unique line of crystalline waterproofing products that penetrate into the surface of cured concrete to fill and seal pores and capillary voids, creating a long lasting protective zone within the concrete substrate.
Once concrete is treated, water is prevented from penetrating through this protective zone and causing associated damage, such as freeze-thaw cracking, reinforcing steel corrosion, chloride ion penetration, and ASR related cracking.
This white paper discusses how the PAVIX CCC100 technology works and its applications.