Fitch Ratings has upgraded St. Louis, Missouri's $740.2 million outstanding airport revenue bonds to 'BBB+' from 'BBB'. The global rating agency says the outlook for the City of St. Louis bonds remains stable.
The Fitch Ratings announcement noted continued stable traffic trends at Lambert-St. Louis International Airport following years of volatility due to the loss of the American Airlines hub and the economic recession. Furthermore, Fitch's baseline expectation is for leverage and airline costs to remain stable going forward and prudent fiscal management of the operating and capital expenditures is also a factor that helped strengthen the airport’s financial profile.
The bonds are secured by the net revenues generated from airport operations.
“The airport’s conservative debt profile, strong fiscal management and continued stability in airline traffic are all contributing factors to the positive news of the credit rating upgrade for the airport bonds,” said St. Louis City Comptroller Darlene Green.
“While continuing to operate a safe and efficient airport, we have been aggressive in reducing costs, growing revenue and growing community support for Lambert,” said Lambert Director Rhonda Hamm-Niebruegge. “It’s all helping to gain the attention of rating agencies.”
Lambert has seen two straight years of passenger growth. This summer, Lambert airlines are operating on average 255 daily departures to 63 non-stop locations. Lambert’s newest non-stop to Grand Rapids, MI will begin in August on Southwest Airlines.
Avoid parking fees the next time you pick up a passenger. Lambert provides free waiting zones for motorists near each terminal.