Fitch Ratings has assigned Los Angeles World Airports (LAWA) an ‘AA’ rating for the upcoming issuance of $237 million in senior revenue bonds on behalf of Los Angeles International Airport (LAX).
It re-affirmed the airport’s existing $2.66 billion parity senior revenue bonds at ‘AA’ and $782.5 million subordinate revenue bonds at ‘AA-'.
And the ratings agency also revised its outlook for all bonds to ‘stable’ from ‘negative’.
According to Fitch Ratings, the upgraded outlook to ‘stable’ is due to LAWA’s implementation of a new rate agreement with airlines at LAX that will provide strengthened cost-recovery terms as the airport moves forward on a $6.9 billion capital spending plan, with additional leverage over the next five years.
The ratings agency attributed the ‘stable’ rating outlook to "LAWA management demonstrating successful execution of its capital programme as noted by the progress of the Bradley International Terminal Project.”
LAWA executive director, Gina Marie Lindsey, said: "It was our goal to have the negative outlook removed.
“We're happy that Fitch has recognised our significant efforts in managing LAX’s finances and capital improvement programme."