PROVIDENCE – The quasi-public agency that controls state airports continues to face moderate credit risk and a stable economic outlook, according to recent ratings by Moody’s Investors Service.
The “Baa1” rating – the eighth-highest ranking for long-term corporate obligations – for the R.I. Airport Corp. reflects the moderate credit risk for $59.8 million in outstanding senior revenue bonds., based on a “relatively stable” demand for services out of Rhode Island T.F. Green International Airport, according to the credit ratings agency.
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Moody’s also described the airport corporation’s economic outlook as stable, based on its “strong management” of airline costs, a balanced air service profile and its services to nearby Providence, all of which “support a niche position within a competitive regional market,” Moody’s said.
Strong liquidity in conjunction with federal relief funds have also helped offset pandemic recovery.
However, the growing presence of Logan International Airport in Boston remains a challenge for Rhode Island, and Rhode Island air travel recovery remains slower than the industry average, Moody’s said.
The ratings reflect about one-third of the airport corporation’s overall $172.3 million in outstanding bonds. No new debt is anticipated over the next five years.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
