Fitch Downgrades St. Louis, MO's Rev Bonds for Lambert International Airport to 'BBB+'
CHICAGO, Oct 15, 2003 (BUSINESS WIRE) -- Fitch Ratings downgrades the rating for the City of St. Louis, Missouri's $922 million outstanding revenue bonds for Lambert-St. Louis International Airport (Lambert or the airport) to 'BBB+' from 'A-', and removes the rating from Rating Watch Negative. The Rating Outlook is Negative.
The downgrade reflects the impact on the airport's financial operations of American Airlines' (American or the airline, senior unsecured debt rated 'CCC+' by Fitch Ratings) recently announced schedule reductions at Lambert that take effect November 1, 2003. The Negative Rating Outlook reflects the increased cost per enplaned passenger resulting from American's actions, a portion of which other carriers will be forced to absorb during a period of continued financial difficulties for the domestic airline industry. The economic sensitivity of the airlines may complicate the renegotiation of the airport's use and lease agreement, which expires Dec. 31, 2005. Furthermore, as American remains the largest carrier at Lambert, even with its reduced schedule, the airport remains vulnerable to additional operational shifts by the airline over the short- to medium-term.
FULL STORY AT NASDAQ
CHICAGO, Oct 15, 2003 (BUSINESS WIRE) -- Fitch Ratings downgrades the rating for the City of St. Louis, Missouri's $922 million outstanding revenue bonds for Lambert-St. Louis International Airport (Lambert or the airport) to 'BBB+' from 'A-', and removes the rating from Rating Watch Negative. The Rating Outlook is Negative.
The downgrade reflects the impact on the airport's financial operations of American Airlines' (American or the airline, senior unsecured debt rated 'CCC+' by Fitch Ratings) recently announced schedule reductions at Lambert that take effect November 1, 2003. The Negative Rating Outlook reflects the increased cost per enplaned passenger resulting from American's actions, a portion of which other carriers will be forced to absorb during a period of continued financial difficulties for the domestic airline industry. The economic sensitivity of the airlines may complicate the renegotiation of the airport's use and lease agreement, which expires Dec. 31, 2005. Furthermore, as American remains the largest carrier at Lambert, even with its reduced schedule, the airport remains vulnerable to additional operational shifts by the airline over the short- to medium-term.
FULL STORY AT NASDAQ
