The Jackson Municipal Airport Authority received a second positive rating on its financial status. Moody’s Investors Service issued a Baa1 rating for JMAA. Key factors included in the report are:
- As the primary air carrier and transport service provider for Mississippi, The Jackson-Medgar Wiley Evers International Airport serves a unique market of business travelers.
- JMAA maintains a strong market position with limited competition. Commercial airline traffic for Fiscal Year 2016 remains stable. Airlines have increased flights and capacity, with the addition of non-stop flights by United Airlines, Inc. and by Delta Air Lines, Inc. JMAA is also in discussions with potential new carriers to provide additional service.
- Through visionary leadership and its Strategic Plan 2021, a focus on air service development, revenue generating projects, and a revised and robust capital improvement plan, JMAA will continue to capitalize on its strengths.
- JMAA refunded its previously outstanding 2005 A & B revenue bonds with a direct placement in 2015. The transaction provided the airport with Net Present Value savings of $3.7 million.
- JMAA’s debt is entirely fixed rate with standard rate and issuance covenants of 1.25 times. The flat debt service profile maintains annual payments of approximately $3 million through 2026 before decreasing to the mid-$1 million range through final maturity in 2035. A strong debt service coverage ratio (DSCR) on JMAA’s bond ordinance provides bondholders with protection against revenue volatility. Liquidity for JMAA is above Moody’s median level for Baa1 rated airports.
JMAA Chief Executive Officer, Carl D. Newman, A.A.E., stated “Moody’s Baa1 rating for JMAA following a similar positive rating by Fitch Ratings confirms that we are focused on the strategic initiatives that will make JMAA facilities the Airports of Choice”.