Moody's Investors Services has raised its long-term rating for two categories of Sky Harbor bonds and predicts the Phoenix airport's passenger rate will grow.

“Phoenix Sky Harbor is the largest economic engine in the state of Arizona and one of our most valuable assets," Phoenix Mayor Kate Gallego said.

“These ratings reinforce the strong management and outlook of our airport, which is vital to our growing area as we continue to look to attract new investments."

Moody’s raised to Aa2 from Aa3 the rating on Phoenix Civic Improvement Corporation's senior-lien general airport revenue bonds and raised its long-term rating to Aa3 from A1 on CIC's junior-lien GARBs, issued on behalf of the airport. 

Both credits have stable outlooks, the firm stated. Moody's also assigned Aa2 to the CIC Airport Revenue Refunding Bonds, Series 2023.

A high bond rating means the airport can realize lower interest rates when issuing debt for airport improvements and modernization projects.

Phoenix Sky Harbor is working on projects, including improving airfield efficiency with a new north/south taxiway on the west side of the airport, a second north concourse at Terminal 3, and a post-security walkway connecting Terminals 3 and 4, city officials said in a release.

“The upgraded ratings reflect the airport's improved air travel passenger base from the limited competition in the region and Phoenix's growing and diversified economy,” they said.

Moody's expects the airport's origination and destination passenger base will continue “to grow modestly and expects the airport to continue to manage the current capital plan effectively, the release stated.

Airport officials recently released March passenger numbers reporting more than 4.6 million people traveled through the airport, a 2% increase from March 2019 before the COVID-19 pandemic and when the airport had its busiest month ever.

March 2023 marks the busiest month in Phoenix Sky Harbor's history, officials said.