Moody's rates Aerostar notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Aerostar Airport Holdings, LLC’s $50 million 6¾% senior secured notes due 2035. The outlook is negative.

Aerostar issued the notes to refinance the outstanding $50 million capex facility due 2016 that it entered into in 2013 when it issued its $350 million senior secured notes due 2035. The proceeds of the 2013 notes were issued to partially finance the acquisition of its long-term lease of Puerto Rico’s Luis Munoz Marin Airport.

The agency said Aerostar is maintaining adequate enplanement growth and very solid revenue growth despite the Puerto Rican economy's severe economic situation given it is more dependent on tourism, especially related to travelers from the United States, rather than on the domestic economy.

The negative outlook mirrors the negative outlook on the Caa2 rating of the Commonwealth of Puerto Rico and is consistent with Moody’s view that the airport's creditworthiness cannot be completely delinked from the current stresses facing the government, economy and population of Puerto Rico.

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