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Rhode Island's airport lands a Moody's upgrade

BY SourceMedia | MUNICIPAL | 12/29/25 12:59 PM EST By Rich Saskal

A strengthened financial profile, supported by new airline service, landed a rating upgrade for Rhode Island's primary airport.

Moody's Ratings upgraded the Rhode Island Airport Corporation's outstanding airport revenue bonds to A3 from Baa1 on Dec. 22. The outlook is stable.

The commission runs Rhode Island T. F. Green International Airport, serving Providence, in addition to general aviation fields around the state.

The upgrade "reflects the airport's strengthened financial profile," the rating agency said in a news release, citing debt service coverage ratios averaging 2.0x over the past three years and liquidity nearly doubling from pre-pandemic levels.

The airport's financial performance has been boosted by the growing presence of Breeze Airways, which has supported increasing enplanements, the rating agency said.

Through October, year-to-date enplanements are up 8.6%, according to traffic data published by the airport commission. The numbers were bolstered by a 23.5% gain in Breeze passenger numbers and a near-doubling of JetBlue (JBLU) enplanements.

In any case, Moody's said, the airport doesn't rely on Breeze service to maintain debt service coverage because scheduled annual debt service required will fall approximately 25% in fiscal 2026 from fiscal 2025 levels and will remain near those levels for the next four years.

Breeze and JetBlue (JBLU) are the third- and fourth-place carriers at T.F. Green, behind Southwest (LUV) and American.

The Moody's upgrade affects $117 million of outstanding airport revenue bonds, issued through the Rhode Island Commerce Corp.

The rating incorporates demonstrated strong fiscal management, a balanced air service profile and the airport's convenience and proximity to the Providence metropolitan area, "helping to support a niche position within a competitive regional market," Moody's said. The rating is challenged, it said, by strong competition from large hub Boston Logan International Airport only 60 miles away, and medium hub Bradley International Airport only 90 miles away in Connecticut.

In connection with the upgrade, Moody's affirmed its Baa1 rating on $32.7 million of Rhode Island Airport Corporation Consolidated Rental Car Facility first lien special facility revenue bonds.

Fitch Ratings rates the airport revenue bonds A, after a one-notch upgrade in February. The outlook is stable. S&P Global Ratings rates them A with a stable outlook.

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