Fitch Ratings has affirmed the ‘A+’ rating on the State of Alaska’s Alaska International Airport System (AIAS, or the system) approximately US$551 million of revenue bonds. The rating outlook for all bonds is stable.

The rating reflects AIAS’s strong market position for cargo activities, a monopoly for air service within the state albeit supported by a modestly sized traffic base, conservative debt structure, and management’s continued prepayment of debt. Cargo volume continues to exhibit volatility but is somewhat mitigated by a more stable enplanement base of 2.9 million, modest operating revenue growth, and flat operating expenses. AIAS’s liquidity position remains strong with 528 days cash on hand (DCOH) while leverage is elevated for its rating level at 9.7 times.