Investors Revise 2013 US Aviation Sector Outlook

Moody’s Investors Service last Wednesday said it revised its 2013 outlook for the United States airport sector to stable from negative as the rating agency said it expects the airports to maintain the financial performance achieved last year, according to The Tide reports.

Moody’s said the outlook on the airports sector has been negative since August 2008.

However, the agency said that the uncertainty of federal funding remains negative for airport credit quality.

“Although the long-term FAA reauthorization bill passed in 2012 provides for stable funding levels, these levels are currently exposed to across-the-board cuts from sequestration, debt ceiling, or budget negotiations,” Moody’s said.

“The outlook for the US airport sector is stable due to projected modest economic growth in the US and global economies that should support enplanement and subsequent revenue increases,” the rating agency said in a statement.

The stable outlook also reflects strengthened airport finances, and better than expected operating results in 2011 and 2012, Moody’s said.

Airline financial strength has increased, reducing the risk of sudden declines at the airports and supporting a stable outlook, Moody’s said.