MOODY'S ASSIGNS Aa3 RATING TO METROPOLITAN AIRPORT AUTHORITY OF ROCK ISLAND COUNTY'S (IL) $24.6 MILLION GENERAL OBLIGATION BONDS, SERIES 2010A-E

Posted on: June 9, 2010, 5:50 pm

NEW YORK, Jun 9, 2010 -- Moody's Investors Service has assigned a Aa3 rating to the Metropolitan Airport Authority of Rock Island County's (IL) $3.5 million General Obligation Refunding Airport Bonds (Alternative Revenue Source), Series 2010A; $5.6 million General Obligation Refunding Airport Bonds (Alternative Revenue Source), Series 2010B; $1.5 million General Obligation Refunding Airport Bonds (Alternative Revenue Source), Series 2010C; $2.5 million General Obligation Airport Bonds (Alternative Revenue Source), Series 2010D; and $11.54 million General Obligation Airport Bonds (Alternative Revenue Source), Series 2010E. Concurrently, Moody's has affirmed the airport authority's Aa3 general obligation unlimited tax rating, which applies to $24.6 million in outstanding long-term debt. Though the current issues are ultimately secured by the authority's general obligation unlimited tax pledge, management expects debt service will be supported by Passenger Facility Charge revenues. Bond proceeds will refund the current portions of Series 2000B and 2000C bonds. Approximately $14 million in new money from the current issues will finance various capital equipment purchases as well as runway rehabilitation. Affirmation of the Aa3 long-term rating reflects the authority's diverse tax base which encompasses 81% of Rock Island County (GO rated Aa2); sound financial operations with ample reserves; and a moderate debt burden with slow principal amortization that is expected to remain manageable given the lack of additional borrowing plans...

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