Moody’s affirms credit rating, economic outlook for R.I. Airport Corp. bonds

FEDERAL GRANTS will provide a total of $7.3 million to T.F. Green International Airport in Warwick, pictured, and Quonset State Airport in North Kingstown. / COURTESY R.I. AIRPORT CORP.

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.

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.

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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.

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