KBRA assigns the long-term rating of AA+ with a Stable Outlook for the City of Atlanta, GA Airport General Revenue Bonds, Series 2023B (Non-AMT) and Series 2023C (AMT), Airport Passenger Facility Charge and Subordinate Lien General Revenue Bonds, Series 2023D (Non-AMT) and Series 2023E (AMT), and Airport General Revenue Refunding Bonds, Series 2023F (Non-AMT) and Series 2023G (AMT).

Key Credit Considerations

Credit Positives

• Growing population and economic base, and favorable location and facilities support Delta’s primary hub, and underpins ATL’s position as busiest airport in the world.
• Highly effective management team that implemented initiative-taking measures and steered the Airport through the COVID-19 pandemic.
• Favorable metrics feature an extremely competitive CPE and elevated coverage of General Revenue and Hybrid PFC Bond debt service.

Credit Challenges

• High carrier concentration with Delta representing more than 80% of enplaned passengers.
• Connecting traffic is a significant component of overall enplanement activity.
• Large capital program has associated execution and construction risk.

Rating Sensitivities

For Upgrade

• Timely, and on-budget completion of planned capital projects with debt and financial metrics exceeding the base forecast.

For Downgrade

• While a highly remote prospect, reduced importance of ATL as Delta’s primary hub.

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Methodologies

Public Finance: U.S. General Airport Revenue Bond Rating Methodology

ESG Global Rating Methodology

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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