KBRA has affirmed its BBB- rating for JFK's New Terminal One (NTO) $4.55bn special facilities revenue bonds and $1.78bn term loan related to the ongoing development of the new terminal at the airport.
A portion of the series 2024 bonds, around $800 million, benefit from a financial guaranty policy issued by Assured Guaranty Municipal, which has a KBRA rating of AA+.
JFK NTO operates terminal one under a lease agreement with the Port Authority of New York and New Jersey.
As of April 2025, the completion rate of the project is estimated to be around 67% and the financial progress tracking at 69%, which is within expectations of forecasts. The total project costs remains at $5.7bn, with $563.8 million of contingency funds used so far and leaves around $235.9 million. The project's design-builder contract increased slightly to $4.07bn due to approved change orders, up from $3.9bn.
KBRA said its affirmation reflects the airport's “premier international gateway” status for the New York region, as well as the strong demand for widebody gates and robust project liquidity.
The agency said an upgrade is unlikely in the short term due to the remaining refinancing risk.
“Once construction is completed and all of the long-term financing in place, an upgrade could occur if traffic and revnues significantly exceed expectations,” said KBRA in its report. “Once construction and all of the long-term financing is in place, an upgrade could occur if traffic and revenues significantly exceed expectations.”
Additionally, a downgrade could occur in the short term due to construction delays or traffic volumes that are “consistently under” the agency's forecast.