PROVIDENCE – Standard & Poor’s Global Ratings has raised its long-term and underlying ratings for the Rhode Island Airport Corp. from A- to A, with a stable bond outlook.
The Jan. 20 report noted that RIAC projects strong passenger growth in 2023 that is expected to reach pre-pandemic levels in the summer based on recently announced route expansions at Rhode Island T.F. Green International Airport. The report cited the airport’s likely return to near pre-pandemic levels in their assessment of the airport’s improved market position assessment and strong enterprise risk profile.
Over the past 12 months, T.F. Green’s monthly enplaned passengers have climbed back to about 80% of 2019 pre-pandemic levels, according to the report.
“This rating upgrade is welcome news, affirming the current and long-term fiscal health of the Rhode Island Airport Corp.,” said Jonathan Savage, chair of RIAC’s board of directors. “RIAC, and all our airports, including Rhode Island T. F. Green International Airport, are integral economic drivers for the state economy.”
The report also noted RIAC’s key credit strengths, which include “very strong” liquidity and financial flexibility, with several years of rising liquidity levels, reaching $85.5 million in unrestricted cash and equivalents at fiscal year-end 2022; “very strong” management and governance, with a good track record of operating the major lines of business and managing risk, as evidenced by high liquidity, conservative budgeting, and meeting financial targets; and “very strong” debt and liability capacity, with a manageable capital improvement plan and no additional debt needs in the near term.
“RIAC’s strong long-term financial standing and outlook is a testament to the diligent work of all at the airport corporation, as well as the tireless support of our important mission by Rhode Island’s leadership,” said Iftikhar Ahmad, CEO and president of the Rhode Island Airport Corp. “Rhode Island’s aviation-related economy has been able to emerge from the pandemic on a strong fiscal foundation.”
