October 18, 2018 — Moody’s Investors Service has upgraded the outlook of the Cincinnati/Northern Kentucky International Airport’s (CVG) $44 million of Series 2016 bonds from stable to positive and affirmed the A2 rating previously set in March of 2016. Moody’s stated that the rating reflects strong growth in passenger and cargo volumes over the last five years at CVG.
Moody’s also pointed out as positives: improvements in cost per enplanement, debt service coverage and liquidity, very low debt burden and limited constraints on growth.
“CVG is experiencing a lot of positive change, including growing our passenger traffic by more than 31 percent over the last two years, diversifying our carrier base and strengthening our position as the lowest-fare airport in the region,” said Candace McGraw, CEO, CVG. “Also, cargo tonnage has grown more than 50 percent over the last two years and we’re now the 8th largest cargo airport in North America. These successes are being noticed and reflected in our solid financial profile.”
In 2016, CVG transitioned from a full residual airline agreement to a new five-year hybrid airline agreement. Moody’s noted that CVG’s liquidity due to strong activity levels and increased revenue retention under the new agreement were key contributors to the revised outlook from stable to positive.