BWI Credit Tussle Puts Fee-Backed Bond Risks On Display

Law360, New York (October 4, 2012, 7:30 PM EDT) -- Fitch Ratings this week removed a negative credit watch on bonds to cover improvements at Baltimore's airport after state transportation officials agreed to trim their borrowing plans — a reminder, experts say, that leveraged passenger fees are not a cure-all for airport capital needs.

Leaning too heavily on these bonds — which are backed by ticket fees known as passenger facility charges, or PFCs — can be risky for hubs like Baltimore that rely on a single airline for the bulk of their traffic and those...
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