Miami International Airport outlook raised to positive by Fitch

Fitch Ratings raised its outlook on Miami-Dade County, Florida's aviation revenue bonds to positive from stable Friday and affirmed its A-plus rating, pointing to solid financial performance and a stabilizing leverage profile.

Miami-Dade County issues bonds for Miami International Airport. The rating affects $4.8 billion of parity aviation revenue bonds.

The county plans to price $629 million Series 2026A and 2026B senior lien aviation revenue refunding bonds on June 16. They will be used to refund all or a portion of Series 2012B, 2015A, 2015B and 2016A bonds.

Miami International Airport "is a well-positioned gateway airport that serves a growing Latin American air service market" and has strong cargo volume, Fitch said. Despite competition from Fort Lauderdale International Airport, the airport has a strong position in both domestic and international passenger travel, Fitch said.

"The airport's residual framework ensures all operating and debt service costs are sufficiently covered, independent of traffic performance," Fitch said.

All of the airport's long-term debt is fixed rate and fully amortizing, the agency added.

The airport's capital improvement plan through 2030 is "sizable," Fitch cautioned. Funding is expected primarily from bonds. "Fitch has incorporated planned new money debt through 2032 in its analysis; however, the timing and funding sources of longer-term capital needs remain uncertain." The airport is working on refining a CIP through 2043.

The bonds are rated A-plus with a stable outlook by S&P Global Ratings and AA-minus with a positive outlook by KBRA.

A spokesman for the airport didn't immediately respond to a request for a comment on the Fitch action.