Written by The Business Journal Staff
Moody’s Investors Service has announced an improved credit outlook for Fresno Yosemite International Airport’s credit outlook from stable to positive. The ratings agency also affirmed the airport’s Baa1 rating on Airport Revenue Bonds.
Moody’s cited several credit strengths as contributing factors for the improved outlook including: strong management control of Fresno Yosemite International Airport’s financial operations and liquidity, increased airline seat capacity and flight frequencies supported by solid passenger bookings and a modest Capital Improvement Program with no planned future debt issuance.
According to Moody’s, an improved cash position could lead to a future upgrade to the airport’s rating.
“As a vital economic engine for the region, we are pleased to have demonstrated to Moody’s a stable financial position supported by responsible fiscal management and increased passenger activity through the airport,” said Director of Aviation Kevin Meikle. “A significant component of the airport’s financial profile presented to Moody’s included an analysis of the area’s economic trends and we would like to acknowledge the Fresno County Economic Development Corporation for its contribution in illustrating the diversified and growing economy of our region.”
Fresno Yosemite International Airport’s positive outlook from Moody’s is the second improved credit outlook received from a major bond rating agency over the past year. In December, Standard & Poor’s revised its outlook to positive from stable.
The recent improved outlooks signal to the market a credit upgrade is possible in the near term.
Fresno Yosemite International Airport currently offers Valley passengers daily non-stop flights to Dallas, Denver, Las Vegas, Los Angeles, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, Seattle and Guadalajara, Mexico, on domestic and international carriers.
FYI is a municipally owned entity operating as a self-supporting enterprise. No City of Fresno general funds are used to operate the airport or nearby Fresno Chandler Executive Airport.