Moody’s Investors Service affirmed the A1 credit rating of the Indianapolis Airport Authority, but the agency lowered the airport authority’s ratings outlook to negative from stable.
On the up side, Moody’s said the airport maintains its investment-grade rating with a diversified mix of carriers and cargo operations, little competition from other airports, and a stable market area.
The outlook was lowered, however, because of a still-sluggish U.S. economy, the slow growth in enplanements, and because of a bigger debt load from building a new terminal complex.
Airport officials said Moody’s has downgraded ratings or lowered the outlook on at least seven airports.
“U.S. airports have received more downgrades than upgrades over the past 18 months,” the authority said in a statement.
Moody’s issued its rating ahead of the airport authority’s planned $350 million bond issue to refinance variable-rate debt.•