"Fitch Publishes Disclosure Guidelines for U.S. Airports"

Wednesday, February 12, 2003

Fitch Publishes Disclosure Guidelines for U.S. Airports


NEW YORK--(BUSINESS WIRE)-- Fitch Ratings published a new report today
outlining its secondary market disclosure recommendations for airports. The
airport disclosure guidelines are part of an ongoing series of Fitch
research outlining recommended disclosure and management practices for each
sector in the municipal market. 

"As credit spreads have again widened in response to the industry turmoil,
airports need to continue providing timely information to investors in order
to ensure accurate measurement of credit quality and continued access to the
capital markets," said Peter Stettler, Director, Fitch Ratings. "The need
for heightened disclosure is particularly true for airports that serve as a
connecting hub for a carrier currently or potentially in bankruptcy
proceedings due to their significant financial exposure to that one entity,"
says Stettler. 

Fitch's recommendations outlined in its report include the release of the
entity's annual audited financial statements, based on generally accepted
accounting principals, within 120 days of the end of the fiscal year. The
statements should include management's discussion and analysis of the
airport's financial performance incorporating an update on the capital
program and outlining any significant operational changes at the airport.
The balance sheet, operating statement and cash flow statement should
reflect data material to understanding the financial operations of the
airport. 

Recommended supplementary information includes a calculation of annual debt
service coverage based on the provisions of the governing legal documents,
operational data, and information on the airport's passenger facility charge
(PFC) program. In addition to the annual information, Fitch recommends
airports prepare interim reports on either a monthly (preferred) or
quarterly basis containing basic financial and operational data. The interim
statements should be released within 45 days of the end of the reporting
period. 

"Fitch believes an issuer's dedication to providing timely information to
investors is a key indicator of the quality of management, an increasingly
important component of Fitch's overall rating criteria," said Stettler.
"Cooperation in providing information to the market in a timely manner
reflects well on management's commitment to its bondholders and becomes a
strong influence in positive rating actions." 

A copy of 'Disclosure Guidelines for U.S. Airports' can be accessed via
FitchResearch Fitch's subscription-based web site at 'www.fitchratings.com'
by selecting the U.S. Public Finance page and clicking on special reports. 

Fitch maintains underlying ratings on approximately $44 billion of debt for
67 US airports, including 28 of the 30 largest facilities in the nation.
Fitch also maintains a number of ratings on airport-related project and
special facility transactions including terminal facilities, rental car
facilities, and fuel facilities.

disclosure.pdf