NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a research report assessing the evolving impact of the coronavirus threat at U.S. airports.
Last week, KBRA published the Coronavirus (COVID-19) Impacts and Fears: A Focus on U.S. Airport Credit report, which discussed the coronavirus threat to airports and posited that international gateways appear to be the first affected. While these gateways have recorded flight cancelations to China, Italy, South Korea, and Japan due to a high incidence of COVID-19 infection in those countries, KBRA believes that U.S. airports serving domestic locales with strong tourism/leisure, convention, and trade show industries are likely more vulnerable to reduced passenger activity as the spread of contagion continues.
We have observed a spate of event cancelations in the last week as the prime spring/summer season for these events approaches. Our expectation is for a cascading of like decisions going forward, at least until there is some measure of virus containment and renewed traveler optimism. Business travel decisions are being considered with an abundance of caution, as are determinations for leisure trips and travel to visit friends and relatives. KBRA believes that warnings from the director of the National Institute of Allergy and Infectious Diseases about avoiding long flights and crowded spaces, particularly for travelers with underlying health conditions, can only further dampen airport passenger volume.
To access the report, click here.
- Coronavirus (COVID-19) Impacts and Fears: A Focus on U.S. Airport Credit
- KBRA Monitors Coronavirus (COVID-19) Credit Impact by Sector
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.