JACKSONVILLE, Fla. — The Jacksonville Aviation Authority has received strong credit ratings from three major agencies as it prepares to issue $230 million in bonds to fund a major expansion at Jacksonville International Airport.
Moody’s Ratings assigned the Authority an A1 rating, S&P Global Ratings issued an A rating and Kroll Bond Rating Agency gave the highest mark with an AA rating. All three agencies described the Authority’s financial outlook as stable.
Officials said the ratings are expected to allow the Authority to secure more favorable interest rates, reducing overall borrowing costs. This marks the first time the organization has issued public debt in nearly two decades.
The funding will support construction of Concourse B, a major expansion project expected to add additional gates and improve passenger amenities at the airport.
KBRA cited the Authority’s strong financial profile, including high debt service coverage and strong liquidity, along with steady demand driven by military, business and tourism activity. The agency also noted that JAX is currently the only medium hub airport in the country to receive a AA rating from KBRA.
Moody’s highlighted the airport’s dominant role as the primary commercial airport in Northeast Florida and its growing service area. The agency said it expects the Authority to maintain strong financial metrics while completing the project without significant delays or cost overruns.
“These ratings signify the strong financial position of the JAA,” said CEO Mark VanLoh. “This allows us to finance projects that matter to the Northeast Florida community such as the construction of Concourse B.”
S&P Global Ratings said its stable outlook is based on expectations that the Authority will maintain healthy financial performance supported by positive passenger trends and no additional major debt needs.
Board Chair David Hodges Jr. called the bond issuance a key step in moving the project forward, crediting the organization’s financial management.
Chief Financial Officer Ross Jones said the ratings reflect strong leadership and financial planning as the Authority prepares to enter the bond market.
With the ratings in place, the Aviation Authority plans to seek financing in early May to move forward with what officials describe as its largest construction project in nearly 20 years.