Credit rating agencies positive about issuance of MDOT revenue bonds to support BWI Marshall Airport project
BALTIMORE, MD—Fitch Ratings and Moody's Investors Service have upgraded their ratings on Maryland Department of Transportation revenue bonds for a major project at Baltimore/Washington International (BWI) Thurgood Marshall Airport. The upgrades come just ahead of a planned bond sale intended to fund the completion of the Concourse A/B Connector and Baggage Handling System project.
Fitch Ratings upgraded the bonds from A to A+ with a stable outlook, while Moody's assigned an A1 rating with a stable outlook to the new issuance and reaffirmed its existing rating on the bonds. Both agencies cited BWI Marshall Airport's strong financial profile, bolstered by a full recovery in passenger traffic, as a key driver for the upgrade.
The positive ratings reflect the airport's strategic importance to Southwest Airlines, its position in the competitive Baltimore-Washington D.C. market, and the strength of its partnership with Southwest, according to Fitch. BWI Marshall Airport is Southwest's busiest station on the East Coast, with the airline flying 18.3 million passengers through the airport in 2023.
Maryland Transportation Secretary Paul J. Wiedefeld highlighted the significance of the ratings upgrade, stating, "The ratings upgrade, coupled with the recent addition of several new transcontinental flights by Southwest Airlines and two straight months of record-breaking passenger traffic, demonstrates the strength of BWI Marshall Airport and its important role in the region."
The upcoming bond sale, expected this month, will aim to raise approximately $230 million to fund the final stages of the largest capital project in the airport's history. This project encompasses a direct connection between Concourses A and B, a new baggage handling system, expanded seating areas at passenger gates, additional restrooms, and new food and retail concessions.
The new baggage handling and connector system is expected to be operational by late 2025, with the entire expansion project slated for completion in 2026.
Ricky Smith, Executive Director/CEO of BWI Marshall Airport, expressed confidence in the airport's financial position and its commitment to responsible fiscal management, stating, "We are well positioned for work to enhance the passenger experience and drive economic growth for the region."
This was written with the assistance of AI and reviewed by a human editor.
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