CHICAGO O'HARE INTERNATIONAL AIRPORT RECEIVES AN 'A' BOND RATING FROM NATION'S TOP BOND RATING AGENCIES
First Lien Passenger Facility Charge Revenue Bonds are Upgraded to 'A+' / 'A1'
'A+' / 'A1'
CHICAGO - May 5, 2001, The City of Chicago Department of Aviation's second lien passenger facility charge revenue bonds in the aggregate principal amount of $700 million receive an 'A' rating from Fitch and Standard & Poor's, and an 'A2' rating from Moody's.
Similarly, O'Hare's $230 million first lien passenger facility charge revenue bonds are upgraded from 'A' to 'A+' for Fitch and S&P, and from 'A2' to 'A1' for Moody's.
This upgrade gives O'Hare the highest rating of PFC backed bonds in the nation. The collection of PFCs pays the debt service on the first and second lien bonds. Use of PFC revenue bonds will keep a significant portion of the debt service cost out of the airlines' rate base and maintain a competitive cost structure at O'Hare.
The Department of Aviation recently increased the passenger facility charge from $3.00 to $4.50 per qualifying enplanement. Many of the airport improvement projects to be financed with the series 2001 bonds are currently in design and construction phase.
Projects to be funded with the Series 2001 Bonds include terminal facade and roadway infrastructure improvements, airfield rehabilitation and noise mitigation.
"The City of Chicago is pleased to receive these ratings," said Aviation Commissioner Thomas R. Walker. "It demonstrates our solid airport management and financial acumen complimented by Chicago's strong metropolitan center," he added.
The 2001 PFC revenue bonds will be special, limited obligations of the City payable solely from PFCs collected at O'Hare. These Bonds will not be supported by City tax dollars.
