Fitch Rating Affirms Jackson Municipal Airport Authority’s Outlook Stable
By Jewell Davis, Jackson Municipal Airport Authority
Fitch Ratings has affirmed the Jackson Municipal Airport Authority’s (JMAA) approximately $11 million airport revenue bonds at “BBB+.” The Rating Outlook remains stable. The airport also has approximately $24 million in airport revenue bonds not rated by Fitch.
Some of the key elements used to determine JMAA’s rating and outlook include the following:
- JMAA management has several capital projects underway which focus on revenue-generating and airport improvements. The projects remain flexible, in the event of lower than expected cash flow, and are not expected to impact airport operations.
- The airport’s debt is entirely fixed rate with standard rate and issuance covenants of 1.25x. The flat debt service profile maintains annual payments of approximately $3 million through 2026 before decreasing to the mid-$1 million range through final maturity in 2035.
- JMAA has a strong financial profile, maintaining approximately 2.4 net debt-to-fiscal (as calculated by Fitch) 2016 cash flow available for debt service (CFADS), with approximately $20.9 million of unrestricted cash and operating reserves.
“We are pleased that Fitch Ratings has announced another positive assessment of JAN’s financial state,” said Carl D. Newman, Chief Executive Officer. “With the implementation of several strategic goals and objectives, including key capital projects, we will continue to effectively deliver on making JAN an airport of choice for travelers across Mississippi.”