Chicago  - Fitch Ratings has assigned an 'A+' rating to The City of San Antonio's approximately $83.6 million of series 2019A&B senior lien airport system revenue bonds, and an 'A' rating to the $94.8 million Series 2019A&B subordinate lien and passenger facility charge refunding bonds. The Rating Outlook is Stable.

Rating Rationale

Summary: The ratings reflect San Antonio Airport's (SAT) resilient and largely origin & destination (O&D) traffic and demand that is supported by a moderate carrier diversification. Although SAT faces competition from nearby Austin-Bergstrom International Airport, SAT is served by carriers that continue to expand domestic routes. The airport also utilized a compensatory airline use and lease (AUL) agreement, which has stabilized and improved financial performance. Financial metrics remain favourable as noted by leverage which is trending lower as well as aggregate DSCR remaining healthy while enplanements and operating revenues grow.