Moody’s Investor’s Service raised the outlook on the A. B. Won Guam International Airport senior revenue bonds Baa2 rating to stable from negative Wednesday.
Moody’s Lead Analyst William Oh said the improved outlook stemmed from Moody’s expectation that enplanement levels will continue to improve because South Korea and Japan have lifted COVID-19-related travel restrictions.
The airport’s management “has taken key actions to ensure that debt service coverage remains satisfactory, including debt restructuring and operating cost reductions.”
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Oh said, given the anticipated end of federal pandemic-related aid and increase in debt service in fiscal years 2024 and 2025, a failure of enplanements to continue a rapid recovery to pre-pandemic levels would “likely weaken” the airport’s credit profile.
Moody’s action affects $194.3 million in outstanding bonds including $47.1 million in forward delivery bonds to be delivered in July.
Guam’s central government revenues have come in strong in recent months. It expects to sell a general obligation bond later this year.