Fitch Ratings’ outlook on $16.7 million in bonds issued by Bradley International Airport in Windsor Locks remains negative, with the scheduled transition Friday of the airline hub to a new airport authority causing much of Wall Street’s angst.
Bradley’s poor traffic performance over the last five years and a switch in leadership to a newly created Connecticut Airport Authority away from the state Department of Transportation led New York-based Fitch to keep the negative rating.
Still, Fitch affirmed its ‘A’ rating on Bradley’s bonds, citing signs of a recovery in airport traffic.
“We are gratified that the rating remained unchanged,” said DOT spokesman Judd Everhart.
Passenger boardings rose 9.3 percent through three quarters of the current fiscal year after enplanements fell to 2.6 million in 2010 from 3.6 million in 2006. The airport’s rating hinges on traffic improving, Fitch said.
The report praised Bradley’s diversified air carrier mix, healthy liquid position and improvements in debt service coverage.
However, creation of the Connecticut Airport Authority is a cause for concern, Fitch said.
The new quasi-public authority will replace the current airport management structure on Friday.
Gov. Dannel Malloy and the Legislature designed the authority to be more autonomous and responsive to the air-passenger market.
Fitch says it will monitor how the new authority affects the airport’s overall strength and financial flexibility.
