Bradley International Airport, CT's 2019A & 2019B Customer Facility Charge Revenue Bonds Rated 'A-'; Outlook Stable


CENTENNIAL (S&P Global Ratings) March 14, 2019--S&P Global Ratings assigned 
its 'A-' long-term rating to the Connecticut Airport Authority’s proposed 
$33.7 million series 2019A and $125.1 million series 2019B customer facility 
charge (CFC) revenue bonds for the grounds transportation center (GTC) project 
at Bradley International Airport (BDL). The outlook is stable. 

We assess the bonds using our "U.S. And Canadian Not-For-Profit Transportation 
Infrastructure Enterprises" (TIE) criteria.

"The ratings reflects our opinion of the expected facility's strong enterprise 
risk profile and adequate financial risk profile," said S&P Global Ratings 
credit analyst Ken Biddison. We applied a one-notch positive adjustment using 
holistic analysis in arriving at the final 'A-' rating, to reflect our opinion 
of the generally steady rental car activity levels at BDL and the GTC's 
relatively good debt capacity. 

The enterprise risk profile reflects our view of the facility's strategic 
location at a medium-hub airport and established demand trends that we expect 
will remain generally stable through the GTC project's construction. Partially 
offsetting these factors are rental car activity's exposure to cyclicality, 
because demand is tied to business travel and tourism; and competition from 
transportation network companies, which we believe could somewhat constrain 
rate-setting flexibility. The financial risk profile encompasses our 
forward-looking view of the facility's debt service coverage (DSC) and debt 
metrics through the GTC's construction, offset by the facility's single-asset 
nature and narrow revenue stream that provides substantially all the net 
revenues pledged to the bonds.

The CFC revenues bonds will fund a portion of the development and construction 
costs related with the GTC project at BDL, finance a coverage and debt service 
reserve fund for the bonds, pay capitalized interest on the bonds through 
2020, and finance related costs associated with the issuance.

The GTC project will consolidate all rental car activities into one on-airport 
site. The project will consist of a five-level garage with three levels of 
rental car company space, a quick turn-around space including a fuel 
distribution and storage system, and a new building to host the airport 
transit center. Management expects to complete the project by Sept. 1, 2022, 
and estimates total projects costs will be $209.5 million.

The stable outlook reflects our expectation that demand for car rentals at BDL 
will be relatively stable, supporting DSC (S&P Global Ratings-calculated) 
above 1.25x; and the project will not experience significant cost overruns or 
delays.

Given that the project's completion is beyond our two-year outlook period, we 
do not expect to raise the rating in that time.

Although unlikely during the outlook period, we could lower the rating if the 
project issues significant debt, pressuring DSC and weakening debt capacity.
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