Fitch Ratings has affirmed the 'BBB' rating on $2.26 billion in special facilities bonds, series 2016A (tax exempt AMT), and $150 million special facilities bonds, series 2016B (taxable), issued by New York Transportation Development Corporation on behalf of LaGuardia Gateway Partners, LLC (LGP). The Rating Outlook is Stable. KEY RATING DRIVERS Summary: The rating reflects progress to date with no major delays, and the project remains on schedule to achieve substantial completion by July 8, 2022. The project is supported by the essentiality of the Port Authority of New York and New Jersey's-LaGuardia Airport's (LGA) Terminal B facility. LGA's strong service area and constrained footprint support resilient traffic levels, though competition remains. Forecasts show rising costs, most recoverable from airlines, and include growth in concession revenues.  The project supports higher than average leverage for investment grade at 13.6x, while 1.4x-1.5x forecast debt service coverage ratios (DSCRs) are in line with criteria for a 'BBB' rating. Project complexity and construction execution risk are adequately mitigated through the experience of the design-build joint venture (DBJV) and security package, and progress to date indicates no major delays or cost overruns.  Experienced Contractors, Adequate Security (Completion Risk - Midrange): LaGuardia Gateway Partners, LLC (LGP) benefits from two experienced contractors whose credit quality does not constrain the project rating. The security package features a fixed-price, lump sum, date-certain contract with parent guarantees, adequate liquid security and built-in contingencies. LGP's design/construction plan includes detailed cost estimates and adequate liquidated damages, protecting against cash flow stress from delay or contractor replacement. Stable Traffic Profile (Revenue Risk Volume - Stronger): The closest New York airport to Manhattan, LGA serves roughly one-third of regional domestic passenger traffic. LGA served 29.8 million passengers in 2016, up 4.7% over 2015, and grew at a five-year CAGR of 4.3%. Terminal B handled 51% of traffic, with a diverse carrier mix. The terminal saw 4.6 million enplanements in the June-December 2016 period, 2.2% higher than expected in the initial project model. Competition risk is mitigated by proximity to the city, New York market capacity constraints and high slot demand. Uncertain Cost Recovery (Revenue Risk Price - Midrange): Existing airline agreements have been agreed to be extended through construction but uncertainty exists regarding cost recovery post-completion. Airline payments are expected to be 80%-85% of pledged revenues. In Fitch's rating case, project-based cost per enplanement (CPE), including airline-specific costs, rises to $30 post-completion but remains competitive with other New York airport CPEs. O&M and Lifecycle Plan (Infrastructure Development & Renewal - Stronger): LGP's lease agreement and implementation plan manage operations and renewal. Handback includes a five-year look forward funding provision at 115% of the handback requirement. Covenants Offset Escalating Structure (Debt Structure - Stronger): All debt is fixed rate, with a sound rate covenant (1.25x), distribution lockup (1.20x), adequate operating reserves and a cash-funded, six-month DSRF built up during construction. Debt service rises over the lease term, requiring revenue growth. Financial Profile: Initial leverage is elevated at approximately 13.6x on a net debt/cash flow available to debt service (CFADS) basis in the first fully operational year but is expected to evolve downward through growth in airline and non-airline revenues. Under all Fitch Ratings-reviewed scenarios, the debt burden is offset by a stable DSCR range in both Fitch's base case (1.48x-1.53x) and rating case (1.38x-1.47x). Project construction liquidity is adequate and will be provided through an initial working capital reserve and various capital and operating contingencies. Peer Group: The nearest comparable peers to LGP are JFK's Terminal One Group Association, LP (TOGA, 'A-'/Outlook Stable) and JFK's International Air Terminal (JFK IAT or Terminal 4, BBB+/Stable), which operate under similarly unique business models as LGP, albeit without completion risk. LGP's peers compete for New York international travel, while LGP is focused on nearly only domestic travel. LGP is more levered than its peers but less single-carrier concentrated relative to JFK IAT. LGP and JFK IAT share similar large-scale operations, double those of TOGA, while TOGA's rating reflects a contractually sound payment obligation from four major carriers on a joint-and-several basis.