Philadelphia Parking Authority's Airport Bonds Get An Upgrade
By Steve Tawa
PHILADELPHIA (CBS) -- The major bond rating agency has decided to improve the Philadelphia Parking Authority's bond rating for its business at Philadelphia International Airport.
Standard and Poor's is raising its rating on the authority's airport parking revenue bonds from A- to A.
The S & P upgrade reflects a relatively strong business at Philly International, at which the PPA is the exclusive public parking operator.
PPA finance director Barry Kavitsky says much like a homeowner, the authority refinanced twice in recent years.
"So our debt service coverage went to a better position because our (interest) payout, over the years, will be $15 million less than what it was prior to the refinancing," he says.
The Parking Authority has about $163 million in airport parking bonds outstanding.
The S & P report says traffic at the airport -- the 17th largest in the US -- has fluctuated in recent years due to the recession, but rebounded last year.
