Memorandum
Augusta Regional Airport has reached its first ever positive rating from S&P Global Ratings.
The company raised the rating on the airport’s general revenue bonds from “BBB” to “BBB-“, moving it from a stable outlook to positive. The report is on both the long-term rating and the underlying rating.
“The rating action reflects our expectation that AGS will maintain financial metrics consistent with a very strong financial risk profile given the airport’s recent positive enplanement trends that have exceeded S&P Global Ratings’ updated activity recovery estimates,” said S&P Global Ratings credit analyst Kayla Smith.
The company based the rating on several factors including the airport’s strong cash positions due to improved operating revenues and federal relief grants.
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“I think it just shows, even in the pandemic environment, it shows the fiscal responsibility of the airport,” airport Executive Director Herbert Judon, Jr. said. “We were very cognizant about spending and trying to operate in streamline things. So, I think that the bond rating is again reflective of our day-to-day operation and our historical operation.”
Judon said the improved rating can also be a marketing tool for the airport.
“So, if you are a business looking to operate in the airport you know you’re going into a fiscally sound environment, where things are running appropriately. “Also, what it does for us is, if we have situations where we do need to take on some debt, it’s more favorable for us in terms of different rates and different acquisition of debt. So, it helps the airport grow as well,” he said.
Another review will be conducted within the next 12 to 24 months. Depending on the outcome, the airport’s rating could be increased again.
Dana Lynn McIntyre is a general assignment reporter for The Augusta Press. Reach her at dana@theaugustapress.com
