Citing “severe declines” in passenger traffic due to COVID-19, Fitch Ratings has lowered its outlook on the debt that’s financing Bradley International Airport’s $210 million transportation center project.
The Connecticut Airport Authority issued approximately $151 million in customer facility charge revenue bonds last year to help finance the Windsor Locks ground transportation center project, which is meant to bring rental car operations within walking distance of passenger terminals.
Fitch on Friday affirmed its ‘BBB’ ratings on those bonds, but lowered the outlook to negative, indicating that the rating could be lowered over the next two years. It took similar action on eight other airports, including Boston’s Logan International.
For those airports facilities, Fitch said falling traffic volumes and operating revenues due to the ongoing pandemic will have the greatest impacts from April to June, but that the effects could extend beyond that.
Fitch said Bradley and the other airports it reviewed “have financial profiles that can position them in the near term to manage the risk.”
Construction on Bradley’s transportation project began last year and the project is slated for completion in 2022.
Fitch took a similar action last month on Bradley’s own revenue bonds, affirming their “A” rating but making the outlook negative.
Four other airports in the region were also subject to that April action.
