S&P raises Miami International Airport revenue bonds to A-plus

Miami International Airport got a rating uplift from S&P Global Ratings, which Monday raised the long-term and underlying ratings on airport revenue bonds Miami-Dade County, Florida, issued for the facility to A-plus from A.

The outlook is stable at the upgraded rating; it was positive before the upgrade.

“The rating action reflects our view of MIA’s substantial demand, which surpasses pre-pandemic activity, and its leadership in enplanement growth for large hub airports since the fiscal 2019 peak, which we believe is consistent with a change to the market position to extremely strong,” said S&P Global Ratings credit analyst Nora Wittstruck.

S&P said the stable outlook reflects its view of MIA’s robust activity and demand, which is outpacing pre-pandemic trends as well as the airport’s growth compared with that of large hub peers.

“We believe the enplanement trajectory will support the significant capital plan and sustain the financial position consistent with the A-plus rating,” she said.

The Miami-Dade Aviation Department, a county enterprise fund, operates MIA. It is the fastest-growing U.S. airport, serving more than 30 million passengers since 2019, according to Airports Council International-North America.

In 2022, S&P raised the ratings on MIA’s bonds to A from A-minus.

Also in 2022, Kroll Bond Rating Agency upgraded the long-term rating on the aviation revenue bonds to AA-minus from A-plus and assigned a stable outlook. KBRA’s action followed an upgrade by Moody’s Ratings when it raised its ratings on MIA’s bonds to A1 from A2.

In 2023, Fitch Ratings raised the county’s $4.9 billion of outstanding aviation revenue and revenue refunding bonds issued on behalf of the Miami-Dade County Aviation Department to A-plus from A and assigned a stable outlook.

In November, BofA Global Research said that MIA led the nation’s airports in recovering passenger traffic lost during the COVID-19 pandemic.

“We looked at the total passenger recovery levels for 10 of the largest muni market borrowers in the U.S. airport sector and found half have surpassed 2019 levels while the other half remains below pre-pandemic levels,” the report said.

“Leading the pack is MIA with total passengers for the year to date at 113% of 2019 levels, boosted by domestic travel,” according to the report.