Rhode Island Airport Corporation’s Rating Revised to Positive

Rhode Island Airport Corporation’s Rating Revised to Positive

The Rhode Island Airport Corporation’s (RIAC) ratings outlook has been revised from stable positive by Fitch Ratings.

“This review affirms the fiscal health and growth of the airport. Increased enplanements are obviously positive news for Rhode Islanders because they have more airline and route options, but the enplanements have also improved the fiscal health of the airport and this will reduce our cost of borrowing for future capital improvement projects,” said Iftikhar Ahmad, president, and CEO of the Rhode Island Airport Corporation.

Fitch cited the airport’s expanding enplanement base and the reduction in costs for airlines operating at T.F. Green in recent years.

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“The board could not be more pleased with this ratings review and revised outlook. As the report states, the positive outlook and growth of the airport are being driven by the additions of our newest airlines including Allegiant, Frontier, Norwegian and Air Canada. We can’t thank these carriers enough for the commitment they have made at T.F. Green Airport,” said Jonathan Savage, chairman of RIAC’s Board of Directors.

The Ratings

In their announcement, Fitch Ratings affirmed a BBB+ rating for the airport with a revised positive outlook.

The Fitch announcement stated:

·       … airport that has seen strong enplanement growth in recent years, as it recovers from historical performance of a weakening traffic base caused by carrier route rationalization and competition in the greater New England air trade service area. The airport was able to maintain stable financial performance in terms of coverage and liquidity despite its previously declining enplanements.

·      … As a result of the competitive New England airport environment, the airport experienced enplanement declines from 2006 through 2015, though declines slowed in recent years and enplanement growth occurred in fiscal years 2016 through 2018 and is expected to continue.

·       RIAC's financial and operational performance has continued to strengthen in fiscal 2018, primarily driven by the third straight year of enplanement growth, increasing 17.1% in fiscal 2018 as compared with fiscal 2017. Positive enplanement development has been largely driven by new service lines from Allegiant, Frontier, Norwegian and Air Canada. Operating revenue increased 6.8% in fiscal 2018 …