Fitch Ratings has affirmed the 'A-' ratings on the New Orleans Aviation Board, LA's (NOAB) $982.3 million outstanding parity general airport revenue bonds (GARBs) and $53.6 million of outstanding revenue bonds (passenger facility charge projects), series 2010A and 2010B. The Rating Outlook on all bonds has been revised to Positive from Stable.
The Positive Outlook reflects the airport's robust enplanement growth, strong financial performance, and the residual airline agreement, which ensures all debt service and operating costs are recovered. Also reflected is the near completion of the North Terminal project, which, when opened, will eliminate execution risk and should allow for further enplanement growth and additional passenger spending. While leverage remains elevated in the near-to-medium term, continued enplanement growth above previous expectations, further financial outperformance, and the successful completion of the North Terminal project could support a higher rating. On the passenger facility charge (PFC) lien, the protection against additional borrowings and very high coverage level could potentially support a higher rating, should enplanements continue to perform above expectations.
