RDU Airport, NC – Moody’s Investors Service this week assigned an Aa3 rating to the Raleigh-Durham Airport Authority’s upcoming sale of approximately $153 million of Airport Revenue Bonds. The agency also upgraded to Aa3 from A1 its rating on the Authority’s existing $622 million in airport revenue bond debt.

Last week, Fitch Ratings assigned an AA- rating to the Authority’s upcoming airport revenue bonds, while upgrading the Authority’s outstanding airport debt to AA- from A+.

“The ratings from Moody’s and Fitch highlight the Airport Authority’s strong fiscal management and confirm its commitment to operating an efficient airport focused on air service to support our region,” said Jim Gill, the Airport Authority’s deputy director of finance and administration.

Moody’s and Fitch each cited the Authority’s financial strength, strong air service market and number of airlines providing service as primary reasons for ratings assignments and upgrades to existing revenue bond debt.

Proceeds from the upcoming sale of Series 2007 bonds, which will mature in 2038, will provide additional financing for RDU’s new terminal project. The bond sale is scheduled for the week of May 14. The sale will be secured by a net revenue pledge of the Authority and will be on parity with the Authority’s outstanding airport revenue bonds.

When completed, the new terminal will replace RDU’s Terminal C, which was built as a hub for American Airlines in 1987. The new terminal will be nearly three times the size of its predecessor, feature greatly expanded ticketing, security checkpoint and baggage claim areas and position the airport for future growth.

With the new ratings, the Airport Authority joins an elite group of airports. Only two other medium-hub airports have received Moody’s Aa3 rating, while three similar-size airports currently hold an AA- rating from Fitch.

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