OREANDA-NEWS. S&P Global Ratings has assigned its 'A' long-term rating to Miami-Dade County, Fla.'s pro forma $365 million series 2016A (non-alternative minimum tax [AMT]) and pro forma $377 million series 2016B (taxable) aviation revenue refunding bonds issued for Miami International Airport (MIA). At the same time, S&P Global Ratings affirmed its 'A' rating on the county's aviation revenue bonds issued for MIA. The outlook is stable.

"The rating reflects our assessment of a large connecting hub airport with a niche market dominance with additional debt needs that has produced steady financial results despite having a high debt load and high airline cost structure," said S&P Global Ratings credit analyst Joseph Pezzimenti.

Depending on market conditions at the time of sale, the county intends to use the 2016 bond proceeds, together with other available funds of the aviation department, to refund some principal amounts and maturities of the series 2003E, 2007A, 2007B, 2007C, 2008A, 2008B, 2009A, 2009B, and 2010A bonds for debt service savings without extending maturities.

MIA has experienced what we view as generally good air travel demand in the past few years, which we expect to continue. From fiscal years 2007 to 2015, the airport's 23.0% growth in domestic enplaned passengers outpaced Fort Lauderdale International Airport's (FLL) 7.6%. MIA share of domestic enplanements between itself and FLL increased to 52% in 2015 from 48% in 2007. The airport ranks second in the U. S. for total international passengers, behind New York's JFK International Airport.

The stable outlook reflects S&P Global Ratings' expectations that MIA's enplanements will remain near recent levels and that the airport's financial performance will remain steady, despite its additional debt needs.

We do not expect to raise the ratings over the next two years, given MIA's high debt load, high airline cost structure, and additional debt plans.

We could lower the ratings in the next two years if management is not able to consistently produce coverage (S&P Global Ratings-calculated) at or above 1x due to increasing leverage or a material decline in enplanements.