July 26, 2010
Airport Revenue Bonds, which are used to help fund major projects at Phoenix Sky Harbor International Airport, have maintained an excellent bond rating by both Standard & Poor’s (S&P) and by Moody’s Investors Service. The City of Phoenix Senior Lien Bonds were affirmed at “Aa3” from Moody’s and “AA-” from S&P, ratings which are among the highest afforded to airports nation-wide. Junior Lien Airport Revenue Bonds Series 2010A, 2010B and 2010C bonds have received an “A1” rating by Moody’s and an “A+” rating by S&P.
S & P and Moody’s are among the world’s most respected and widely used sources for credit ratings. These ratings help investors to analyze credit risks and determine the bonds’ interest rates. The higher the bond rating, the lower the interest rates and therefore the less the City of Phoenix Aviation Department has to pay to borrow the funds. According to an official report issued by S&P today, the City has an “Experienced and effective administrative team that employs prudent and conservative financial and debt management practices.”
Phoenix Mayor Phil Gordon was delighted with the report, saying, “While we all continue to face difficult economic times, this Airport Revenue Bond rating reflects the Phoenix airports’ strength and stability. The airports are a $33 billion economic engine for the region, pumping money into the economy at a time when it’s desperately needed.”
Airport revenue bonds help to fund large projects and airport improvements on facilities such as initial components of the PHX Sky Train, land acquisition and terminal and airfield improvements. Moody’s Investors Service points out the low fares available to consumers in Phoenix, “Strong market share by both U.S. Airways and Southwest Airlines creates a competitive airline environment that moderates airfares.”
“I would like to thank Phoenix Airport Director, Danny Murphy and his team and Phoenix Finance Director, Jeff Dewitt and his team,” said Phoenix City Manager, David Cavazos. “Thanks to their leadership and teamwork, Phoenix Sky Harbor International Airport continues to be recognized world-wide for its excellent financial management.”
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