Business and Finance

Standard & Poor's has given an A- long-term rating, and stable outlook, to Miami-Dade County’s series 2009A and 2009B aviation revenue bonds, issued for Miami International Airport.

The rating agency also affirmed its A- long-term rating, and underlying rating with a stable outlook, on the county's $4.5 billion of parity debt, also issued for the airport.

The agency said its rating “reflects our view of Miami International's status as a large connecting hub with a niche market dominance as a gateway to Latin America, balanced against an increasing debt burden and rising airline cost structure.”

In September, the U.S. Department of Transportation’s Bureau of Transportation Statistics named MIA the busiest U.S. airport for international travelers.

S&P analyst Laura Macdonald said the stable outlook is based on the expectation that American Airlines will continue to operate a major hub at MIA.

In addition, she noted that the Miami-Dade County Aviation Department needs to continue to work closely with the airlines in reviewing capital improvement projects.

The county took over the massive expansion of the airport's North Terminal from American Airlines in 2005 after questions were raised about construction oversight and cost overruns online cash advance.

Earlier this month, a groundbreaking was held for the MIA Mover, a $342 million light-rail people-mover system that, when completed, with connect the airport with the Miami Intermodal Center.

"Prudent implementation of the CIP to maintain current estimates of additional indebtedness will be an important rating factor," Macdonald wrote.

Competition for passengers from Fort Lauderdale-Hollywood International Airport and international passengers from other U.S. airports on routes to Latin America is a concern, according to the report.

The report noted that “net airport revenues secure the series 2009A and 2009B aviation revenue bonds, which the county is issuing for the purpose of refunding all of its outstanding commercial paper and help finance a portion of the CIP. After this issuance, the airport will have approximately $5.1 billion in total debt outstanding.”

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