KBRA Assigns AA- Rating to the Salt Lake City, Utah (Salt Lake City International Airport) Airport Revenue Bonds, Series 2021A and B; the Outlook is Stable

Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA- with a Stable Outlook to the Salt Lake City, Utah (Salt Lake City International Airport) Airport Revenue Bonds, Series 2021A (AMT) and Series 2021B (Non-AMT). The Outlook is Stable.

The strength of SLC’s air service area (ASA); favorable enplanement trends, including a post-pandemic recovery in traffic that has exceeded many U.S. airports; and historically low debt levels underpin the rating. Counterbalancing the aforementioned strengths is the Airport’s reliance on traffic generated by Delta Air Lines (Delta) and its regional affiliates, though Delta has recently reaffirmed its commitment to the Airport given its strategic importance to Delta’s domestic network. While leverage associated with The New SLC results in higher costs and debt per enplaned passengers once financing for the program is fully implemented, levels remain competitive, especially compared to airports of a similar size and profile.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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