Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA- with a Stable Outlook to the following Wayne County Airport Authority bonds:

• Airport Revenue Bonds, (Detroit Metropolitan Wayne County Airport), Series 2021A (Non-AMT)
• Airport Revenue Bonds, (Detroit Metropolitan Wayne County Airport), Series 2021B (AMT)

Key Credit Considerations

KBRA continues to monitor the direct and indirect impacts of the COVID-19 virus. Click here to access KBRA’s ongoing research on the topic. The ratings were assigned because of the following key credit considerations:

Credit Positive

• Market position as primary commercial airport for the broad and diverse Detroit MSA (the 14th most populous in the U.S.) supports significant O&D activity that forms the basis for hubbing.
• Delta’s continuing commitment to the Airport and its strategic value as an east coast focused mid-continent hub.
• Relatively low airline costs and limited future capital needs.

Credit Challenges

• Unprecedented passenger traffic declines due to COVID-19 pandemic public health measures.
• High concentration of Delta and reliance on connecting activity make the Airport vulnerable to Delta service determinations.

Rating Sensitivities

For Upgrade

• Diversification of the carrier mix and trend of increasing O&D enplanement activity.

For Downgrade

• Significant reduction in Delta Air Lines operations at Airport.
• Inability to rebound from severe pandemic-related reduction in passenger volumes.

ESG Considerations

Environmental Factors

The Authority’s Department of Environment & Sustainability (the “Department”) manages day-to-day environmental operations at both Detroit Metro and Willow Run Airports, including, aircraft deicing fluid collection and recycling; stormwater management; hazardous/non-hazardous material testing and disposal; facility environmental inspections; recycling program support; and construction project oversight. All aircraft deicing at DTW is conducted in areas that drain to one of two wastewater treatment facilities. Deicing is conducted on one of the four remote deicing pads where runoff is recycled or at gate areas that drain to one of two sanitary sewage treatment plants.

The Department is also responsible for complying with wetland regulations at both Detroit Metro and Willow Run Airports. Wetlands are protected if possible and if development projects necessitate wetland impacts, mitigation measures are implemented.

In 2020, the Authority adopted a Sustainability Policy that targets the reduction of waste, reuse of materials, promotion of recycling, and support of ongoing global efforts to reduce greenhouse gas emissions with the intention of mitigating the negative impacts of climate change. The Policy sets as a goal a 50% reduction in greenhouse gases by 2030 and net zero emissions by 2050.

To access ratings and relevant documents, click here.

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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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