KBRA Assigns AA+ Rating to City of Atlanta, GA Airport General Revenue Bonds, Series 2026
KBRA assigns a long-term rating of AA+ to the City of Atlanta, Georgia's (the City) Airport General Revenue Bonds (GARBs), Series 2026A-1 (Non-AMT) (Green Bonds), Series 2026A-2 (Non- AMT), Series 2026B-1 (AMT) (Green Bonds), and Series 2026B-2 (AMT) issued for Hartsfield-Jackson Atlanta International Airport (the Airport). Concurrently, KBRA affirms the long-term rating of AA+ for the City's outstanding Airport General Revenue Bonds and Passenger Facility Charge (PFC) Subordinate Lien Airport General Revenue Bonds (Hybrid PFC Bonds). The Outlook for all the City's Airport Revenue Bonds is Stable.
The City's GARBs, including the Series 2026 Bonds, are secured by a pledge of, and senior lien on, the Airport’s net General Revenues, while the City's Hybrid PFC Bonds are secured by a senior lien on PFC revenue and a subordinate lien on the Airport’s net General Revenues. KBRA makes no rating distinction between the GARBs and Hybrid PFC Bonds given the strength of debt service coverage on both liens and the subordinate pledge of Airport net revenues available to pay Hybrid PFC debt service, if needed. Currently the Airport has approximately $3.16 billion and $1.38 billion of GARBs and Hybrid PFC Bonds, respectively, outstanding. Proceeds of the Series 2026 Bonds, a portion of which the City designates as Green Bonds, will finance various projects within the Airport’s capital improvement program (CIP, known as ALTNext), repay commercial paper and short-term notes outstanding, fund a deposit to the debt service reserve fund, pay capitalized interest, and pay various issuance costs.
