NASHVILLE ─ Standard & Poor’s Ratings Services affirmed its 'A' long-term rating to the Metropolitan Nashville Airport Authority's (MNAA) outstanding airport improvement revenue bonds and ‘A-‘ long-term rating on the MNAA’s series 2010 special facility revenue bonds issued for Nashville International Airport’s (BNA) consolidated rental car facility project. In addition, Standard & Poor's affirmed its ‘AAA/A-1’ rating on the series 2008A bonds. The outlook on all ratings is stable. The MNAA owns and operates BNA and John C. Tune Airport, one of the busiest general aviation airports in Tennessee. BNA is the fourth fastest growing among the top 75 airports in North America.
"This reaffirmation of the Authority's bond ratings and stable outlook underscores our strong and growing Nashville market, our commitment to conservative fiscal management and low operating costs, and air service expansion," said Rob Wigington, president and CEO of the MNAA. “The Authority is dedicated to continuing to provide Nashville and the Middle Tennessee region with enhanced air service offerings to improve the quality of life and economic vitality of this area.”
The ‘A’ rating denotes strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.
Standard & Poor’s identified the following strengths as contributing to the ‘A’ long-term rating for MNAA:
- A strong competitive position, with 4.9 million enplaned passengers in fiscal 2012, about 84 percent of which were origin and destination passengers, and little competition from nearby airports;
- A low debt burden at $46.13 per enplanement for fiscal 2012, debt service decreasing substantially starting in fiscal 2017, and a capital plan with no additional debt needs; and
- A low airline cost structure, with a cost per enplanement of $3.82 for fiscal 2012.
This year, MNAA is one of only two Tennessee organizations to receive the prestigious Excellence Award from the Tennessee Center for Performance Excellence, a statewide quality program patterned after the national Baldrige Performance Excellence Program. We are committed to continuous improvement and very proud to be the first airport authority in the U.S. to earn this award at its state’s highest level.