Upgrade Reflects Airport’s Strong Credit Profile
March 25, 2016 — Moody’s Investors Service has upgraded CVG’s revenue bonds rating to A2 from A3, citing “the significant progress CVG has made in transitioning from a connecting hub to a multi-carrier, origin and destination (O&D) airport” as the reason for the upgrade.
Moody’s also pointed out as positives, CVG’s very low leverage, strong debt service coverage, stable passenger traffic and manageable near-term capital spending.
“We’ve been working hard to diversify our carrier base and revenue streams, and this bond rating upgrade is a reflection of that hard work,” said Candace McGraw, chief executive officer, Cincinnati/Northern Kentucky International Airport. “We’re proud that others are taking notice of our solid financial profile.”
Since 1972, CVG had operated under a full residual airline agreement, but transitioned to a new five-year hybrid airline agreement effective January 2016. According to Moody’s, “this change affords the airport greater control over operations and planning, without exposing the airport to proportionally more risk.”