Fitch Rates RDU Revenue Bonds 'A+' and Places RDU's Credit Rating on Positive Outlook

RDU Airport, NC – The Raleigh-Durham Airport Authority was assigned an A+ rating from Fitch Ratings, New York, for approximately $300 million in series 2006 variable rate revenue bonds (AMT). Fitch also affirms the A+ rating on the Authority's outstanding $331 million airport revenue bonds. Bond proceeds will finance elements of the airport's Terminal C reconstruction project.

Fitch also placed the Authority's underlying credit rating on positive outlook, indicating that based upon positive financial and operational performance of the airport, RDU's credit rating could be increased in the near future.

“We are pleased that Fitch has recognized the financial and managerial performance of the Authority and continues to see the value in RDU and our projects, aimed at improving the airport for our customers and the community,” said Jim Gill, RDU's deputy director for finance.

The series 2006 bonds will be priced on or around June 12 and will mature in 2036. The bonds will be secured by a net revenue pledge of the Authority and will be on parity with the outstanding $331 million airport revenue bonds.

According to Fitch, the A+ rating reflects the authority's strong financial position marked by high levels of unrestricted liquidity and strong operating margins; an experienced management team; the diversity of airline service at RDU; and the vitality of RDU's air trade area.

The series 2006 bonds will finance the transformation of the airport from a mid-1990's connecting hub for American Airlines to an airport serving a broad range of carriers. Bond proceeds are expected to fund approximately half of project costs and the Authority expects to issue an additional $160 in bonds during 2007.