Moody’s Investor Services has assigned a Baa2 rating, with a stable outlook, on the A.B. Won Pat International Airport Authority's 2019 General Revenue Bonds. Baa2 is Moody's second-lowest investment-grade rating.
The rating is for the $20 million Series A and $20.06 million B bonds.
Moody’s rating rationale is based on the airport’s position as the only FAA-certified commercial airport serving Guam, and the acknowledgment of the authority’s hybrid rate-making framework that has supported stable growth over the past years, the airport stated in a press release.
“Moody’s action is indicative of their confidence in our financial and business performance amidst changing travel trends to the island,” stated Tom Ada, airport executive manager, in the agency's press release.
This rating is very important as the Guam airport agency is poised to refinance its 2013 Revenue Bonds next month on the bond market, he continued.
Cash-flow savings acquired through the refinancing of a portion of the 2013 Revenue Bonds will be applied to airport capital improvement projects, the agency stated. “Improvements to Guam’s airport is a continuing process to ensure safe and efficient airport operations,” Ada added.
In the 2018 budget year, the airport generated total operating revenue of around $69 million and passenger traffic reached around 1.78 million.