KBRA Assigns AA Rating with Stable Outlook to Clark County, NV's Airport System Subordinate Lien Revenue Refunding Bonds Series 2026A (Non-AMT) and Airport System Subordinate Lien Revenue Bonds Series 2026B (AMT); Affirms Outstanding Ratings

NEW YORK--(BUSINESS WIRE)--KBRA assigns the long-term ratings on the following Clark County, NV Bonds:

• Airport System Subordinate Lien Revenue Refunding Bonds Series 2026A (Non-AMT) at AA
• Airport System Subordinate Lien Revenue Bonds Series 2026B (AMT) at AA

KBRA additionally affirms the long-term ratings on the following Clark County, NV Bonds and Notes:

• Subordinate Lien General Airport Revenue Bonds (GARBs) at AA
• Passenger Facility Charge (PFC) and Subordinate Lien GARBs at AA
• Junior Subordinate Lien Revenue Notes and Jet A Bonds at AA-

The Outlook on all ratings is Stable.

The Stable Outlook reflects KBRA’s expectation that healthy passenger activity will continue to underpin sound financial performance and ample liquidity, providing the Department with operational and capital support commensurate with the rating level. The Outlook additionally assumes the loss of enplanements and related revenue associated with Spirit’s closure will be temporary, with other airlines gradually filling this void over time.

Key Credit Considerations

Credit Positives

• Large, mainly O&D passenger base with limited competition and a diverse carrier mix.
• Strong liquidity and satisfactory debt service coverage margins, given the residual AULA.
• Declining annual debt service requirements and limited expected borrowing in CIP.

Credit Challenges

• Leisure and hospitality base could be vulnerable in a severe economic downturn and competitive pressures.
• Significant variable rate debt/interest rate swaps require ongoing monitoring and have associated risks.

Rating Sensitivities

For Upgrade

• Significant, additional progress toward a fixed-rate debt structure.
• Materially improved debt metrics.

For Downgrade

• Issuance of additional debt resulting in materially diminished financial flexibility.
• Sustained enplanement decline due to diminished air trade area relevance.

To access ratings and relevant documents, click here.

Methodology

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

Disclosures

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014927