Warwick, RI – Standard & Poor’s Global Ratings recently announced they have raised the Rhode Island Airport Corporation’s revenue bond rating to ‘A’ from ‘BBB+’. This change reflects a two-notch jump in their rating system.
“These changes are happening because of a steadfast commitment to change the direction of the airport, which endured a decline in enplanements, routes and airlines over a 10-year period up until 2015. Since that time, the board, the management team and the employees of RIAC have worked to resurrect the airport in a meaningful way that is truly paying dividends for the State of Rhode Island,” said Iftikhar Ahmad, president and CEO of the Rhode Island Airport Corporation. “None of this could have been accomplished without the unwavering support of Governor Raimondo in addition to the support and collaboration we receive from Commerce Secretary Pryor.”
“Over the last four years, our economy has grown by leaps and bounds and we’ve transformed T.F. Green into one of the most convenient airports in the country,” said Governor Gina M. Raimondo. “This is yet another sign of how far we’ve come, and I look forward to building on our progress in the years ahead.”
“T.F. Green Airport is recognized as one of the nation’s most convenient airports,” said Rhode Island Commerce Secretary Stefan Pryor. “Under Governor Raimondo, our administration is taking steps to enhance the climate for business in Rhode Island. T.F. Green Airport is an important and valued asset, and we are very pleased with its continued financial health and performance.”
“This rating upgrade is welcome news and it affirms the fiscal health and growth of the airport. This is good news for the airport, but more importantly it is great news for the State of Rhode Island as T.F. Green is an integral driver and contributor to Rhode Island’s economy,” said Jonathan Savage, chair of RIAC’s Board of Directors.
In evaluating RIAC’s General Airport Revenue Bond, the S&P reported stated:
· Very strong management and governance, with a good track record of operating the major lines of business and managing risk, as evidenced by improving financial performance, conservative budgeting, and meeting financial targets;
· Debt service coverage at approximately 1.5x that we expect will remain at levels that we consider strong through the capital plan; and,
· Very strong debt and liabilities capacity signified by total debt-to-net revenues of under 10x that we expect will continue.
Note: A copy of the S&P report is attached.