Joel Banner Baird

Free Press Staff Writer

SOUTH BURLINGTON –

Wall Street gave Burlington International Airport a high-sign Wednesday — a bond-rating increase that Mayor Miro Weinberger said bodes well for broader investments in the city.

The upgrade announced by Moody's Investors Service lifts the bond rating above junk status to "investor grade" for the first time since October 2010. The New York City-based firm in January shifted its outlook for the airport from negative to "stable."

Most immediately, those votes of confidence from Moodys will allow the airport to go ahead with a proposed refinancing of bonds at lower interest rates, Weinberger said at a news conference.

In the long run, the mayor added, the enhanced bond rating reflects well on "the underlying health of the owner of the airport," Burlington, and might direct "more money flowing to Burlington instead of Wall Street banks."

Moody's upgrade brings the airport to a rating of Baa3 from Ba1.

The firm's rationale includes:

• Overall improvement in debt management "after a period of volatility in recent years."

• Increased passenger traffic in 2014 after several years of declines and the relatively low cost of air travel out of the airport.

• The the fundamental strength of Burlington's economy, including its "large education and health care presence in Burlington, (and) low unemployment relative to the state and nation."

• A diverse source of airport revenues, including parking and concessions.

• A diverse mix of airlines, coupled with limited competition in the region.

Moody's also listed challenges that remain in place for the airport: low liquidity, which limits financial flexibility, and the recent history of "fragility of demand in the market."

Aviation Director Gene Richards said the airport intends to persist in an upward trajectory.

Richards also credited his team of colleagues, including Burlington Chief Administrative Officer Bob Rusten, with fast-tracking a presentation to Moody's.

"The basic message to them was, 'You spoke to us, and we listened,'" Richards said.

City Councilor Karen Paul, D-Ward 6, who has worked closely with airport financial reorganization in recent years, characterized the bond-rating upgrade as "huge."

"It's not just stabilizing things, but reversing a trend," Paul said.

Contact Joel Banner Baird at (802) 660-1843 or joelbaird@FreePressMedia.com. Follow him on Twitter at www.twitter.com/vtgoingup.