PROVIDENCE – Standard & Poor’s Global Ratings has upgraded R.I. Commerce Corp.’s general airport revenue bonds issued for the R.I. Airport Corp. from BBB+ to A, RIAC announced Monday.
The upgrade report noted that the RIAC has “very strong” management and governance, “extremely strong service-area economic fundamentals,” low industry risk relative to other sectors and industries, and adequate market position due to “fluctuating traffic trends” while retaining a significant “origin and destination nature with relatively good air carrier diversity.”
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The report also noted strong enplanement gains from fiscal 2017 to fiscal 2018.
S&P said the outlook is stable but could be upgraded if the RIAC debt capacity materially improves and could be downgraded if traffic declines significantly, noting that this possibility is unlikely.
“These changes are happening because of a steadfast commitment to change the direction of the airport, which endured a decline in enplanements, routes and airlines over a 10-year period up until 2015. Since that time, the board, the management team and the employees of RIAC have worked to resurrect the airport in a meaningful way that is truly paying dividends for the state of Rhode Island,” stated Iftikhar Ahmad, president and CEO of the Rhode Island Airport Corp., in prepared remarks Tuesday.
The report said that the RIAC had $48.4 million in cash or equivalents at the end of fiscal 2018. Available liquidity was reported to be roughly 422 days of operation on hand.
Operating revenue was reported as $71.8 million, which represented an increase of 9.8 percent, while operating expenses before depreciation were reported as $41.9 million, a decline of 5.6 percent.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
