KBRA Assigns AA Rating to Various Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport) Airport Revenue Bonds; Affirms Rating for Parity Bonds

KBRA assigns a long-term rating of AA to the Wayne County Airport Authority (Detroit Metropolitan Wayne County Airport): Airport Revenue Bonds, Series 2025A (Non-AMT); Airport Revenue Bonds, Series 2025B (AMT); Airport Revenue Refunding Bonds, Series 2025C (Non-AMT); and, Airport Revenue Refunding Bonds, Series 2025D (AMT). KBRA additionally affirms the long-term rating of AA for the Authority's outstanding Airport Revenue Bonds. The rating Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

• Market position as primary commercial airport for the broad and diverse Detroit CSA (the 14th most populous metropolitan area in the U.S.) supports significant O&D activity that forms the basis for hubbing.
• Delta’s continuing commitment to the Airport and its strategic value as a core, mid-continent hub, and gateway for international service.
• Low airline costs and limited future capital needs.

Credit Challenges

• Passenger enplanement activity has recovered substantially from pandemic lows, though continues to trail the overall U.S. air market due to diminished connecting activity when compared to the pre-pandemic period.
• Enplanement dependency on Delta.

Rating Sensitivities

For Upgrade

• A sustained trend of deleveraging accompanied by sustained, long-term growth in airport utilization.

For Downgrade

• While not expected, a significant and sustained reduction in Delta service.
• Material increase in leverage without a commensurate rise in resources available for repayment.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. General Airport Revenue Bond Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009672

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