Fitch upgrade of BWI Bond Rating Reflects Airport’s Strong Market Position

Fitch Ratings has upgraded the Maryland Department of Transportation’s revenue bonds for a major project at Baltimore/Washington International (BWI) Thurgood Marshall Airport to A+ from A with a stable outlook. The rating upgrade comes in advance of an upcoming bond sale to complete construction of the Concourse A/B Connector and Baggage Handling System at BWI Marshall Airport. Moody’s Ratings assigned a rate of A1 with a stable outlook to the new issuance and re-affirmed that rating for the existing bonds.

“The ratings upgrade, coupled with the recent addition of several new transcontinental flights by Southwest Airlines and two straight months of record-breaking passenger traffic, demonstrates the strength of BWI Marshall Airport and its important role in the region,” said Maryland Transportation Secretary Paul J. Wiedefeld. “Our customers, the commitment from the Moore-Miller Administration, and the strength of our partnership with Southwest Airlines are key factors in these achievements.”

The sale of the revenue bonds is expected this month. Fitch cites both BWI Marshall Airport’s financial profile, supported by the full recovery of passenger traffic, and its strong position in the competitive Baltimore-Washington D.C. market as key drivers of its rating upgrade. The credit ratings agency also noted the strategic importance of BWI Marshall Airport to the Southwest national network. BWI Marshall Airport is the busiest Southwest station on the East Coast. In 2023, Southwest flew 18.3 million passengers at BWI Marshall. There are more than 5,200 Southwest employees in the local market, according to the airline.

The upcoming sale of approximately $230 million in airport revenue bonds is an investment in the largest capital project in the airport’s history. The work includes a direct connection between Concourses A and B, a sophisticated baggage handling system, expanded seating areas at passenger gates, new restrooms and added food and retail concession space. Completion of the new baggage handling and connector system is scheduled for late 2025, with the entire expansion project expected to be completed in 2026.

“These positive ratings reflect the strong financial position of our airport and our commitment to responsible fiscal management,” said Ricky Smith, Executive Director/CEO of BWI Marshall Airport. “We are well positioned for work to enhance the passenger experience and drive economic growth for the region.”

Read more about the rating upgrade from Fitch Ratings here and Moody’s rating here.

BWI Thurgood Marshall Airport is a key driver of economic activity and transportation for the state of Maryland. As the busiest airport in the National Capital region for passenger traffic, the airport provides nearly 300 daily nonstop departures to about 90 domestic and international destinations and produces a total annual economic impact of $11.3 billion. BWI Marshall and its passengers generate, support and sustain more than 107,000 jobs throughout the region.

###