Moody's Investors Service said it has downgraded the rating on the Huntsville Madison County Airport Authority's (HMCAA) $52.3 million airport revenue bonds to A3 from A2. The outlook is stable. HMCAA is the owner and operator of Huntsville International Airport.
Moody's said the downgrade reflects the decline in enplanements worsened by the airport's struggle to attract and maintain air service with a low-cost carrier. The A3 rating and outlook reflect the airport's adequate financial performance and liquidity compared to similarly rated airports, as well as the competition the airport faces from nearby airports, the ratings agency said.
The stable rating outlook is based on Moody's expectation of sustained financial performance and limited additional debt service requirements.