Fitch Ratings has assigned an ‘A-’ rating to $412.4m of new senior revenue bonds issued by the Burbank-Glendale-Pasadena Airport Authority, which operates Hollywood Burbank Airport.
The rating applies to the authority’s series 2026A, 2026B and 2026C bonds. Fitch also affirmed ‘A-’ ratings on approximately $787m of outstanding parity airport revenue bonds, as well as bank notes supporting multiple commercial paper series. The outlook on all instruments is stable.
Fitch said the rating reflects the airport’s position as a secondary facility within the competitive but affluent Los Angeles basin, alongside progress on its terminal replacement project.
However, the agency noted that borrowing associated with the project has increased the airport’s leverage profile. Airline costs are expected to rise as a result, which could affect service retention, although carriers appear supportive.
The rating is also supported by a long-term, fully residual airline agreement, which provides strong cost recovery and helps protect financial performance by insulating the airport from fluctuations in passenger volumes.