[B]URLINGTON – Burlington International Airport’s bond rating outlook has been improved to “positive.”
Fitch Ratings affirmed the airport’s credit rating of BBB- and revised the outlook Aug. 18, according to a news release from the city of Burlington.
“Fitch has now joined Moody’s and the country’s major airlines in expressing confidence that the airport is heading in the right direction,” Mayor Miro Weinberger said in a statement. “After a number of important and hard-earned management achievements, the airport is strong and well-positioned to continue to drive the region’s economic growth.”
Fitch Ratings said the positive outlook revision reflects improved finances, which the rating agency said should continue under a recently implemented airline agreement that has a strong cost recovery framework for the airport.
The report also cites a manageable four-year, $85.9 million infrastructure plan and conservative debt financing.
The news comes as city officials are close to reaching a deal for a 104-bedroom airport hotel.
The new airline agreement mentioned in the report began in fiscal year 2017 and goes for five years.
A Moody’s Investors Service credit report from March indicated the airport achieved its strongest financial position of the last five years in fiscal year 2016. The Fitch report also cites modest growth in airline revenue and passenger numbers over the first 11 months of the city’s fiscal year 2017, which ended in June.
Fitch Ratings also said the end of a long-standing tax settlement discussion with the city of South Burlington, where the airport is located, will save the airport around $800,000 a year.
