Kroll Bond Rating Agency Assigns Long-Term Rating of A+ With A Stable Outlook to The Hillsborough County Aviation Authority, Tampa International Airport Customer Facility Charge Revenue Bonds, 2015 Series A (Non-AMT) and Series B (Taxable)

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of A+ with a stable outlook to the Hillsborough County Aviation Authority, Tampa International Airport $101 million Customer Facility Charge Revenue Bonds, 2015 Series A (Non-AMT) and $298.4 million Customer Facility Charge Revenue Bonds, Series B (Taxable), or together the CFC Bonds.

The Hillsborough County Aviation Authority is embarking on the construction of a ConRAC and APM as part of Phase I of a potential three-phase $2.5 billion Capital Program. The impetus for this project is the conclusion that the current rental car operations are a major contributor to congestion and constrain capacity within the main terminal, curbsides and roadways. Furthermore, the current rental car facilities are expected to reach capacity within approximately one year. Therefore, the rental car operations are being relocated to a new facility away from the terminal area, and connected to the main terminal via an APM, which will also link the economy rate and employee parking area. A new curbside will be established at the ConRAC APM station for picking up deplaning passengers, and will serve as a drop-off point for bus and public commercial transportation vehicles. The ConRAC will group all rental car companies in one location, and bring six of the seven off-Airport rental agencies to on-Airport.

The Series 2015 A Bonds provide a 40% share of the borrowing for the APM. The balance of the Bond-financed component is being met from Aviation Authority Subordinated Revenue Bonds, which were delivered in July 2015. Please see KBRA’s Airport Rating Report Hillsborough County Aviation Authority-Tampa International Airport, dated July 9, 2015 for additional information. The Aviation Authority has secured $178.6 million in Florida Department of Transportation (FDOT) grant proceeds to supplement the funding. The Series 2015 B Bonds fund the ConRAC, and are augmented by approximately $55 million in CFC funds that have been collected since the CFC was first imposed on October 1, 2011.

The rating is based on KBRA’s U.S. Special Tax Revenue Bond Rating Methodology, published on August 21, 2012. In the process of assigning the rating, KBRA reviewed multiple sources of information, met with Aviation Authority management, and conducted a site visit of Tampa International Airport (TPA) facilities.

To view today’s report, please visit: www.krollbondratings.com/show_report/2701

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Harvey Zachem, Managing Director
hzachem@kbra.com, 646-731-2385
or
Andrew Clarke, Senior Director
aclarke@kbra.com, 646-731-2380
or
Alice Cheng, Senior Analyst
acheng@kbra.com, 646-731-2403

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Harvey Zachem, Managing Director
hzachem@kbra.com, 646-731-2385
or
Andrew Clarke, Senior Director
aclarke@kbra.com, 646-731-2380
or
Alice Cheng, Senior Analyst
acheng@kbra.com, 646-731-2403