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City of Colorado Springs / Colorado Springs Airport / News

S&P Rating Services Issues Annual Colorado Springs Airport Credit Rating
Tuesday, January 06, 2015


Standard & Poor's Ratings Services issued its annual credit update for the Colorado Springs Airport’s (COS) outstanding bonds on December 29, 2014.  The rating was affirmed as BBB+ with a stable outlook. 

The stable outlook reflects Standard & Poor's expectation that, despite enplanement declines, COS will maintain its strong liquidity position and that debt service coverage (DSC) will not deteriorate. S&P noted that airport management implemented expenditure cuts in late 2013 that included general operating and maintenance cost reductions – revising its fiscal 2013 budget to offset declines in traffic. In addition to its reduction in operating expenses, the airport also refunded and refinanced its debt obligations, reducing annual debt payment from approximately $5.2 million to $2.4 million. For fiscal 2014, it expects the cost per enplanement to be $7.83 and fall further to $7.56 in 2015.

In addition, airport staff continues to seek opportunities to diversify the enterprise’s revenue stream, including reinvesting in terminal space to generate revenue and business development in the general aviation district, all of which decrease the cost for an airline to operate from COS.

This rating action can be found on Standard & Poor's public web site at www.standardandpoors.com.