Guam – Moody’s Investors Service has affirmed its Baa2 rating of Guam International Airports revenue bonds.
Aviation News reports that Moody’s has rated GIAA’s bond outlook as stable. The bonds are secured by a pledge of net revenues generated by the airport.
Moody’s cited as credit strengths the airport’s monopoly position as essential transportation link for an island economy; capital expenditures that are largely funded from federal grants provides leverage limits; and potential for greater stability in enplanements in the event of an increased U.S. military presence in Guam.
Among credit challenges are volatile enplanement demand drivers, including Japanese discretionary spending, exchange rates and extreme weather events result in greater variability in financial performance relative to similarly rated U.S. airports; leverage as measured by assets to debt is above its Baa2 peers; and exposure to damage from typhoons given South Pacific location.