KBRA has upgraded the rating on the Greater Orlando Aviation Authority Airport Facilities Revenue Bonds (Senior Lien) to AA+. The AA+ rating applies to the Airport Facilities Revenue Bonds, Series 2024 (AMT) and parity Senior Lien Bonds. The Authority's Priority Subordinated Airport Facilities Revenue Bonds, Series 2024 (AMT) are assigned a AA rating. The Outlook on both liens is Stable.

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

• Steady historical growth and resilient post-pandemic recovery in passenger traffic supported by MCO’s unique market position as a premier global tourist destination and its rapidly expanding population and resource base.
• Mainly O&D passenger base with highly diverse airline mix.
• Sound financial operations, with significant funding derived from non-airline sources. CPE is forecast to remain low throughout the remainder of the Authority’s current CIP. Liquidity is ample.

Credit Challenges

• The air service market remains largely discretionary in nature, increasing its susceptibility to exogenous shocks. However, this risk continues to diminish, in our view, due to the exceptional growth and diversification of the service area economy.
• The potential exists for the debt funded portion of the remaining CIP to exceed projections given potential inflationary impacts, limitations on external funding, and the diminished purchasing power of the PFC (which has remained at $4.50 per enplaned passenger since 2000).

Rating Sensitivities

For Upgrade

• Realization of forecasted enplanement growth with accompanying strong revenue performance and continued diversification of non-aviation funding streams.

For Downgrade

• Trend of diminished liquidity levels and/or debt metrics.
• Persistent, severe declines in passenger traffic that pressure operating performance and liquidity.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. General Airport Revenue Bond Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1006887

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