Outlook for airport's debt improves

FORT MYERS — Moody's Investors Service raised the outlook for the debt of Southwest Florida International Airport to stable from negative.

The credit-rating agency's rating of A2 for the airport's $323 million in bonds is relatively strong for municipal credits. The outlook improved because of improvements in passenger traffic this year.

“Maintenance of the A2 rating recognizes the improving passenger volumes and the expectation that demand-driven capital improvements will be unnecessary in the near to medium term and the debt-service coverage ratio will continue to modestly increase,” according to a statement from Moody's.

Moody's says the airport's strengths include growing passenger traffic, diversified airline service, competitive costs and strong liquidity. Its challenges include narrow debt-service coverage based on revenues, high debt relative to its peer group and revenues that subsidize a reliever airport.