Burlington International Airport (BTV),Moody’s announced Wednesday an improvement in Burlington International Airport’s revenue bond outlook from Ba1 negative to Ba1 stable on the City of Burlington’s $43.16 million revenue bonds. This improved outlook is the result of a variety of reasons which are outlined below.Gene Richards, left, listens as Mayor Miro Weinberger speaks during the announcement last November that Allegiant Air would be offering seasonal, direct service to Orlando.BTV’s Director of Aviation, Gene Richards, said, ‘The improvement in the bond rating demonstrates the bright future ahead for the airport and shows the hard work of the BTV Team, through the direction of the Mayor, in ensuring that BTV remains financially strong for many years to come.’’ The rating incorporates the airport’s diverse carrier base and revenue mix, and improving liquidity and financial performance.’ The fundamental strength of the Burlington economy is incorporated in the rating, coupled with the lack of direct competition that is likely supportive of future increased rates and charges at the airport. For future ratings, Moody’s will especially look at improvement in enplanements, which have trended down in recent years.‘The improvement in the Airport’s rating outlook ‘ coming on the heels of the upgraded BED rating outlook and successful wastewater bond refinancing ‘ is more evidence that the City of Burlington has turned the corner in its long-term effort to restore the City’s finances and reputation,’ said Mayor Miro Weinberger.’ ‘This progress is the product of much hard work and commitment by the airport staff, City financial officials, the Airport Commission, and the City Council.’ We still have a long way to go with City and Airport finances and will continue our focus.’ We appreciate the broad support on this issue from the Burlington community.”Appropriately $43.160 million of outstanding debt affectedNew York, January 15, 2014 — Moody’s Investors Service has affirmed the Ba1 rating and revised the outlook to stable from negative on the City of Burlington’s $43 million Airport Revenue Bonds.’ RATING RATIONALE:The Ba1 rating reflects weakness in the airport’s market position shown by recent enplanement declines as well as its financial volatility shown in recent years. The rating also recognizes the airport’s diverse carrier base and revenue mix, and improving liquidity and financial performance. The fundamental strength of the Burlington economy is incorporated in the rating, coupled with the lack of direct competition that is likely supportive of future increased rates and charges at the airport.’ OUTLOOKThe stable outlook reflects the airport’s rising enplanement trend for the first half of fiscal year ending June 30, 2014, as well as the improving debt service coverage ratio (DSCR) and liquidity.’ What Could Change the Rating – UPThe rating could be pressured upward if the airport experiences reliable enplanement growth, improves debt service coverage to above 1.4x (calculated per net revenue) on a sustained basis and is able to restore and maintain liquidity to a reasonable level.’ What Could Change the Rating – DOWNThe rating could be pressured downward if liquidity and debt service coverage falls below current levels, and if leverage increases are not supported by enplanements. Also, the rating could face negative pressure if the FAA inquiry regarding possible grant program violations at the airport have a material impact.’ STRENGTHS* Large education and health care presence in City of Burlington, VT’ * Diversity of the airport revenues, including significant parking and concession revenues aside from airline derived revenues’ * Diversified airline carrier mix that minimizes passenger diversion to airports in Albany, NY and Manchester, NH.’ CHALLENGES* Volatile financial performance evidenced by debt service coverage below rate covenant of 1.25x in FY2009 and FY2010’ * Low liquidity compared to Moody’s airport sector median as measured by 122 days cash on hand in FY2012’ * Declining enplanements in recent years’ RATING METHODOLOGY’ The principal methodology used in this rating was Airports with Unregulated Rate Setting published in July 2011. Please see the Credit Policy page on www.moodys.com(link is external) for a copy of this methodology.’ REGULATORY DISCLOSURES’ For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com(link is external).’ Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.’ Please see www.moodys.com(link is external) for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.