KBRA said the level of Delta enplanement concentration is manageable at the current rating level, noting that SLC serves as Delta's primary connecting complex in the Intermountain West and its fourth largest hub nationally.īutler pointed to Delta's commitments in Utah. "We've actually taken inflation off the table now that we basically secured all the contracts through the end of phase four," Butler said.Ĭredit challenges cited by rating agencies include Delta's dominance at the airport. KBRA said the agreements "demonstrate continued strong support for the New SLC, along with confidence in department management that projects will continue to be implemented in a fiscally responsible manner."Īnother factor was the airport's move to lock in construction costs with contractually guaranteed maximum prices for the remainder of the New SLC program, which replaces substantially all of the airport's terminal complex facilities and is expected to be completed in 2027. "We have a new business deal that generates the cash flow that we need not just to pay the debt service, but to also generate additional cash flow for capital projects outside of the concourses and the terminal," Butler said, adding the airport plans to use federal funds and cash for airfield improvements and other projects. That includes Delta Air Lines, the airport's biggest carrier, which accounted for 73.4% of the airport's fiscal 2022 total volume. Renegotiated use agreements extend through 2044 with airlines representing over 86% of its fiscal 2022 passenger volume. "You have a lot of positive drivers that have led to resilient air travel demand characteristics for this particular airport," said Joe Pezzimenti, an S&P analyst.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |