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Moody’s Issues Annual Colorado Springs Airport Credit Rating

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Colorado Springs, Colo. - Moody's Investors Service will be maintaining the rating on the City of Colorado Springs Airport Enterprise's Airport System Revenue Bonds (Baa1), with the Airport’s outlook remaining STABLE. 

The stable outlook is based on Moody’s expectation that the airport will maintain sound debt service coverage with its lower debt burden and manage expenses to weakened enplanement trends. The airport expects no additional debt in the foreseeable future.

A strength noted in this rating recognizes “management's demonstrated ability and willingness to make cost reductions that has resulted in soun

d debt service coverage, substantial liquidity, and a reduced debt burden.”
In order to address the enplanement losses, the airport has implemented several strategic initiatives, including cost reduction measures, marketing programs, and air service incentive programs. Most notably, the airport made a sizeable debt reduction in FY 2014 by utilizing a portion ($16 million) of its substantial cash reserves on hand for a partial bond refunding, which reduced annual debt service by approximately 55%.
A critical component to ensuring the Airport’s long-term airport financial stability will be the implementation of a new Airline use and lease agreement, anticipated to be executed in October 2015.  This new agreement would replace the current month-to-month agreement with a multi-year commitment further strengthening the partnership between the Airport and Airlines serving COS.   
   
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