Moody's Investors Service has assigned an A1 rating to Broward County's $637 million airport system revenue refunding bonds, Series 2012Q issued for Fort Lauderdale-Hollywood International. Moody's also affirmed the A1 rating on $585 million of outstanding senior lien revenue bonds. The previously outstanding convertible lien bonds were fully refunded in May 2012.
The rating is based on the airport's fundamental strong market position and service offering, supported by below median cost per enplanement, and continued robust PFC revenue collections. The rating also considers the strong support for the expansion project provided by grant revenues as well as the immediate doubling of debt for a necessary but sizable expansion plan.
The negative outlook reflects the size and complexity of the capital expansion plan which is currently taking place, and forecasted below median coverage ratios and more limited financial flexibility based on projections that assume higher than historical growth levels in the medium term.