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Fitch now lists the $221 million in outstanding revenue bondsas BBB+, down from A-. The ratingv outlook has also been revised to negative from The bonds were issuedin 2006. The new consolidatef rental carfacility (known as CONRAC) is under constructioh adjacent the in College Park, and connects to via an automatef people mover. The downgrade of the CONRAf bonds has no impact on a push by the airporyto re-enter the bond market for up to $800 million in financing to continue construction on the new Maynard Holbroolk Jackson International Terminal.
The airport is also lookingt to refinance upto $590 millioh in existing international terminal general revenue bondas at a better interest The downgraded ratings on the rental car facilityy reflect the falloff in business for rental car companiew and the potential reduction in customer facility charge revenue from fees passenger when they rent a vehicle. CONRAC is expecteed to open inthe fall. Passenger trafficv is expected to dip 2 percent to 3 percenytin 2009, but car rental transactions are expected to plummeg 16 percent from 2008 levels.
Currently, car rentalk transactions are down10 “The rating downgrade for the CONRAC and APM bondsz is based on an elevated risk profile with weakerd than expected coverage levels and a forecast of rising CFC ratezs given the project's higher than anticipated constructiojn costs as well as the recen t downturn in rental car transactions,” Fitch said.
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