HAWAI‘I AIRPORTS SYSTEM RECEIVES UPGRADED BOND RATING FROM MOODY’S; ACHIEVES HIGHEST RATINGS IN ITS HISTORY
FOR IMMEDIATE RELEASE
Feb. 4, 2025
25-0055
HONOLULU – The Hawai‘i Department of Transportation (HDOT) is pleased to announce the state Airports System bond rating was upgraded by Moody’s Investors Service (Moody’s) to Aa3 from A1 in advance of its upcoming bond issuance.
Moody’s cited the Airports System’s strong passenger traffic performance, the state’s economic resilience, Hawai‘i’s “enduring desirability as a premier tourism destination,” and the strength of airports management, noting the system’s “strong and stable finances.” Moody’s also indicated the Airports System’s favorable traffic and financial performance was particularly notable in light of challenges stemming from the pandemic, the Maui wildfires and the strength of the dollar compared to other currencies, which has depressed international traffic demand.
S&P Global Ratings (S&P) and Fitch Ratings (Fitch) also recently rated the Airports System and reaffirmed their ratings at AA- and AA-, respectively. Following the upgrade by Moody’s to Aa3, the Airports System has achieved its highest ratings in history, and is the first time all its bond ratings are in the “double-A” category.
“The state has been investing in Hawai‘i’s airports to modernize our facilities and improve the passenger experience, and this rating upgrade is a testament to the state’s ability to pursue these investments prudently, in a financially responsible manner,” said Governor Josh Green, M.D.
The Airports System is in the midst of a $2.5 billion capital program through 2031 focused on upgrading and expanding airport infrastructure, including runway repairs, terminal renovations, security enhancements and the construction of new facilities.
“These investments in our airports represent the next phase in enhancing the passenger experience for both residents and visitors, while also increasing safety, capacity and improving operational efficiencies,” said Hawai‘i Department of Transportation Director Ed Sniffen.
In recent years, the Airports System opened the Mauka Concourse at Daniel K. Inouye International Airport (HNL), which added 280,000 square feet of terminal space; a Federal Inspection Station Facility at Ellison Onizuka International Airport at Keāhole, adding a second port of entry for international traffic; consolidated car rental facilities at HNL and Kahului Airport; and numerous additional projects across the state to improve terminal spaces with expanded duty-free, retail and concession spaces.
The credit rating increase was announced prior to the Airports System’s 2025 revenue bond issuance, which is scheduled on February 13, and is anticipated to raise approximately $600 million to fund capital projects and an additional $200 million to refinance existing debt for interest cost savings. In preparation for the bond sale, Director Sniffen, Deputy Director of the Department of Transportation for Airports Curt Otaguro, Deputy Director of Finance Sabrina Nasir, and other senior HDOT and state officials met with the bond rating agencies in January, which triggered the review of the Airports System and led to the upgrade by Moody’s.
“The successful rating review and upgrade by Moody’s reflects the confidence the bond market has in the Airports System and how we manage our program and finances,” said Sniffen. “We look forward to meeting with investors in the coming days to discuss the strengths of the Airports System and the Moody’s upgrade will likely translate to lower borrowing cost for our bond issue.”
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Media contact:
HDOT Public Affairs Office
Phone: 808-587-2160
Email: dotpao@hawaii.gov
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