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CLE Airport System Credit Rating  
User currently offlineGreenair727 From United States of America, joined Jan 2007, 615 posts, RR: 0
Posted (6 years 5 months 1 week 6 days 4 hours ago) and read 1582 times:

The city of Cleveland’s Airport System Revenue bonds just got an 'A' underlying long-term credit rating by Fitch Ratings. The Cleveland Airport System is comprised of CLE (Hopkins) and Cleveland Burke Lakefront (BKL). Here’s part of the release:

“The 'A' rating reflects the high origination and destination (O&D) passenger base (77% in 2007), strong liquidity for an airport with a residual rate-making methodology, stable operating margin, proven ability to generate sufficient non-airline revenues, and minimal airport competition within the metropolitan area."

"Offsetting credit factors include the airport's high cost structure, the market share concentration (66% in 2007) of Continental Airlines (Continental; IDR rated 'B-' with a Stable Outlook by Fitch), Continental's recently announced service changes at the airport, and the Cleveland region's weakened economy."

"The airport system serves Northeast Ohio and the Cleveland MSA; its 16-county air service region has a population of 4.1 million. Hopkins recorded 5.72 million enplanements in fiscal 2007, a 1.34% increase over the prior year, largely generated by gains from Continental and Southwest Airlines (Southwest, senior unsecured debt rated 'A'), the two largest carriers at the airport. This increase continued in the first four months of 2008 with a 1.8% increase over the same period in 2007. In addition, the airport served 4.4 million total O&D passengers in 2007, an increase of 3.9% over 2006.”

http://www.marketwatch.com/news/stor...F25-AAA9-D9423048C6CE%7D&dist=hppr

Nice to see CLE/BKL rated well and a positive outlook for the city.

Also… “The airport's capital improvement program (CIP) totals a modest $213 million through 2013, with minimal additional debt planned.”

Is this for the new retail expansion? Or possible the new FIS facility?

2 replies: All unread, jump to last
 
User currently offlineFalcon84 From , joined Dec 1969, posts, RR:
Reply 1, posted (6 years 5 months 1 week 6 days 1 hour ago) and read 1531 times:



Quoting Greenair727 (Thread starter):
"The airport system serves Northeast Ohio and the Cleveland MSA; its 16-county air service region has a population of 4.1 million.

That little tidbit is for all of you who think CLE's service area is small-market. 4.1 Million is not hing to sneeze at, and is one reason why CO really does want to keep CLE growing if oil prices can come down.

As for the FIS, that's been put on hold for a while. Tune in in 2009.


User currently offlineGreenair727 From United States of America, joined Jan 2007, 615 posts, RR: 0
Reply 2, posted (6 years 5 months 1 week 5 days 15 hours ago) and read 1479 times:



Quote:
“The 'A' rating reflects the high origination and destination (O&D) passenger base (77% in 2007)

77% for a hub airport is very high (i think 60% is what airlines generally look for), demonstrating the strength of the local market, thus its no surprise why CO opened a CLE hub after UA pulled out.


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