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S&P affirms rating

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COLORADO SPRINGS, CO – Standard & Poor’s (S&P) Global Ratings has affirmed its BBB+ long-term rating on the Colorado Springs Airport (COS) series 2014 airport revenue refunding bonds and indicated the outlook is stable.

S&P noted that while Denver International Airport is a major competitor to COS, “…we also believe the continued growth in the Colorado Springs economy bolsters the airport’s prospects for positive enplanement trends to continue to a modest extent, to the extent that service levels by the primary carriers, including Frontier, are sustained or grow.”

Additionally, the strong population growth in Colorado Springs and the surrounding areas, along with the substantial military operations and related employment points to a robust demand base for the airport.  The rating agency also credited Frontier Airlines, now serving eight nonstop destinations out of COS, with plans to add two more by fall, with providing substantial passenger activity at COS.

“We appreciate S&Ps thoughtful analysis and rating,” said Greg Phillips, Director of Aviation for the Colorado Springs Airport.  “The fiscal management of the airport is a high priority at COS and we will continue to find ways to diversify our revenue stream and keep costs down.  We are deeply committed to ensuring a low-cost structure to help our airlines sustain and grow their current level of service,” he said.

S&P also pointed out airport management’s decision to use cash on hand to reduce the airport’s long-term debt from approximately $39 million in fiscal 2013, to $13.8 million in fiscal year 2016 has contributed to a stable outlook.  The airport’s cost structure improved to a low $6.10 average airport cost per enplaned passenger (CPE) in fiscal 2016, down from $11.50 CPE in fiscal 2013.

 

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