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06-19-2014 Fitch Affirms Reno-Tahoe Airport Authority’s System Revenue Bonds at ‘A’

06/19/2014

Fitch Ratings said it has affirmed Reno-Tahoe Airport Authority's (RTAA) approximately $23.7 million of senior outstanding airport system revenue bonds at A. The rating outlook is stable.

Fitch said the rating reflects the airport's monopolistic position in northern Nevada, serving a primarily leisure and business market with an enplanement base that continues to experience volatility. In addition, the rating agency noted that the airport has relatively high carrier concentration, with Southwest carrying the majority of passengers. RTAA's healthy balance sheet offsets some of the risks due to the airport’s enplanement base. RTAA's leverage ratio is currently well below peers with more unrestricted cash than debt outstanding, and RTAA's currently high debt service coverage ratio provides significant added financial flexibility, although this will reduce with expected debt issuance for capital purposes, Fitch said.

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