KBRA assigns a long-term rating of A+ to the Reno-Tahoe Airport Authority Airport Revenue Bonds, Series 2026A (AMT) and Airport Revenue Bonds, Series 2026B (Non-AMT). KBRA additionally affirms the long-term rating of A+ for the Authority’s outstanding Airport Revenue Bonds. The rating Outlook is Stable.

Key Credit Considerations

Credit Positives

  • Enplanement growth is buttressed by a growing air trade area economy and limited competition.

  • Sound financial performance, characterized by increasing non-airline revenue generation and healthy liquidity.

  • Historically limited use of debt as a source of capital funding.

Credit Challenge

  • Expected, significant increase in leverage as borrowing to fund MoreRNO occurs over multiple fiscal years

  • Execution and completion risks associated with implementing a multi-year, transformational CIP

  • RNO’s still small enplanement base, coupled with moderate airline concentration and limited geographic reach.

Rating Sensitivities

For Upgrade

  • Strengthening operating margins, coupled with DSC that consistently exceeds required minimums.

  • Maintenance of competitive airline costs that outperform projections.

For Downgrade

  • Issuance of additional debt without a commensurate rise in resources available for repayment.

  • Failure to implement the MoreRNO Program on-time and generally within budget, resulting in financial stress.

  • While not expected, a prolonged period of depressed passenger traffic resulting from an exogenous shock or structural shift in the airline industry.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016300

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