Vermont Business Magazine Moody’s Investors Service affirmed the Burlington International Airport (BTV) credit rating of Baa2 with a stable outlook on Tuesday, July 14, 2020, citing BTV’s continued stability in liquidity and debt service coverage ratios (DSCR), as well as a multi-year airline agreement, as key components of the affirmed rating. The Baa2 with a stable outlook rating is unchanged since an upgrade in May 2018.

“This stable rating from Moody’s is another sign of how much work the Airport team has done to strengthen the Airport’s finances and improve its service for Burlingtonians and our entire region since 2012,” said Mayor Miro Weinberger. “Even as the coronavirus pandemic has disrupted operations at airports everywhere, the BTV team has responded with new ways to keep the Airport working well and keep Burlingtonians safe. I am grateful to Director of Aviation Gene Richards for his leadership and the entire Airport team for their skill and dedication.”

BTV has been extremely effective adapting financially and operationally to the changes brought on by COVID-19. In addition to improving its liquidity through an $8.7 million grant from the CARES Act and $11.1 million revenue anticipation note, BTV has taken many safety measures to ensure passengers are safe while traveling with BTV.

“This rating reflects Moody’s confidence in the Airport’s consistent strong financial performance as well as the strength of our team’s ability to react to industry and economic changes. We are extremely pleased that Moody’s affirmed our credit rating. These are challenging times due to the coronavirus outbreak and Moody’s recognizes the continuous growth in the Airport’s liquidity despite the uncertainty,” said Gene Richards, Director of Aviation, Burlington International Airport. “The credit for this significant accomplishment goes to the BTV team, as well as the City team of Rich Goodwin, Katherine Schad and Mayor Miro Weinberger. BTV is also very fortunate to have built strong relationships with our airline partners who serve the region so well.”

Additional highlights from the Moody's Report

The Moody’s Report also highlights that BTV’s enplanements grew for the fourth year in a row to 693,208 in fiscal year 2019.  Although they expect enplanements to decline this year due to uncertainty surrounding COVID-19, Moody’s noted that BTV’s status as a regional economic center will sustain a continued demand for air travel and that BTV is well-positioned to serve in the future. Moody’s also notes that in the long-term they expect BTV to be able to balance the current challenges caused by the COVID-19 given both internal and external sources of liquidity, which offer a financial buffer.
Future actions that could lead to another rating upgrade include:

• Enplanement and air service growth that markedly improves the airport’s competitive position in the region
• Net revenue DSCRs above 2.0x times on a sustained basis
• Liquidity sustained above 600 days cash on hand

The historical Moody ratings are below.

About Burlington International Airport: Burlington International Airport (BTV) is northern New England’s most convenient and welcoming airport. Located adjacent to Burlington Vermont, BTV is just ten minutes from Lake Champlain. Business and leisure travelers alike appreciate BTV’s friendliness, excellent on-schedule record, and direct flights to: Atlanta (ATL) via Delta, Charlotte (CLT) via American Airlines, Chicago (ORD) via United or American Airlines, Denver (DEN) via Frontier or United, New York City via United, JetBlue, or Delta, seasonally Orlando (MCO) via Frontier, Philadelphia (PHL) via American Airlines, Washington DC via United or American Airlines. Book your getaway today at FlyBTV.com.

Source: Burlington, VT – BTV 7.21.2020