S&P Global Ratings raised its long-term rating for Ontario International Airport Authority revenue bonds outstanding to A from A-minus because of the airport’s substantial recovery from the COVID-19 pandemic, passenger volumes sustained above pre-pandemic levels and significant cash reserves.
The ratings agency further said its outlook for the OIAA is stable.
“The upgrade reflects our view of the airport’s improved market position and strong overall enterprise risk profile, driven by a substantial rebound in enplaned passenger levels that have been sustained above pre-pandemic levels and the expectation that the authority will maintain financial metrics consistent with a strong financial risk profile as it issues debt to fund its capital needs.,” S&P Global reported.
Three key credit strengths contributed to the higher rating:
- “Robust air travel demand, supported by favorable service are economic fundamentals, including a large, growing population base and ample employment opportunities.”
- “Strong management and governance, with management that we consider capable in operating an airport of this size, and a conservative approach to financial and capital planning.”
- “Strong liquidity position, bolstered by an infusion of federal stimulus aid.”
“We couldn’t be more pleased by the S&P rating as Ontario International Airport continues to turn heads in its pandemic recovery,” said John M. Schubert, OIAA chief financial officer.
“With our population base growing, passenger and cargo volumes remaining strong and our aviation partners showing even greater confidence in our facilities and services, we are looking forward to sustained growth and a bright future.”
Ontario International Airport welcomed more than 5.7 million air travelers in 2022, outpacing pre-pandemic 2019 by 2.8%.
It was the airport’s highest annual passenger volume since 2008. Shipments of air cargo also outpaced 2019 volume by nearly 9% and maintained ONT’s position as a major commerce and logistics hub.
