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April 05, 2013

Fitch downgrades DFW Airport bonds

Fitch Ratings announced on Friday that it has downgraded about $4.7 billion in revenue bonds for  Dallas/Fort Worth Airport.

The ratings agency said it has downgraded the bonds from A+ to A. It also assigned an A rating to the $735 million bonds the airport plans to issue this year to help pay for its terminal redevelopment projects.

"The rating downgrade reflects the sizable increase in airport borrowings to fund DFW's terminal renewal and improvement (TRIP) and ongoing capital programs. The combined cost of the two capital programs is in excess of $4 billion and will raise total debt in excess of $6.5 billion. In Fitch's view, the rising debt burden over the next 12-24 months will result in high leverage, estimated at 13 times (x)-15x net debt to cash flow," the rating agency said.

Last week, Moody's also downgraded DFW's bonds to A2 from A1.

-Andrea Ahles

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