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KBRA Assigns A- with Stable Outlook to Monterey Peninsula Airport District Airport Revenue Bonds and TIFIA Loan
[September 03, 2026]

KBRA Assigns A- with Stable Outlook to Monterey Peninsula Airport District Airport Revenue Bonds and TIFIA Loan


KBRA assigns the rating of A- with a Stable Outlook to the Monterey Peninsula Airport District's (the "District's") Series 2026A (AMT) and Series 2026B (Taxable) Airport Revenue and Refunding Bonds (Monterey Regional Airport Project); and to the 2026 Transportation Infrastructure Finance and Innovation Act ("TIFIA") Loan. The Series 2026A and 2026B airport revenue and refunding bonds will be issued by the California Municipal Finance Authority on behalf of the District.

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

  • Robust growth in passenger traffic, notably in the post-pandemic environment.
  • Stable financial operations, characterized by sound operating performance and healthy liquidity.
  • Historically low leverage, the result of capital investments funded with non-debt sources.

Credit Challenges

  • Expected, significant increase in debt following implementation of the SEP Projects.
  • Relatively small enplanement base that is subject to volatility given the nature of the market.

Rating Sensitivities

For Upgrade

  • Completion of the CIP on-time and under budget, coupled with lower than projected airline costs as a result of enplanement growth that outperforms budget.
  • Stronger than projected non-airline revenues, including both PFC and CFC collections, which help to significantly moderate future airline rates and charges.

For Downgrade

  • Material delay or cost escalation in the CIP that pressures financial metrics and debt requirements.
  • An unexpected, sustained decline in passenger enplanements that negatively impacts operating performance, liquidity, DSC and/or airline cots.

To access ratings and relevant documents, click here.

Methodology


Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016849


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