CO Airport Enterprise's Series 2017A and B senior lien ...s - DEN Series 2017...Revenues at DEN are...

U.S. PUBLIC FINANCE

CREDIT OPINION20 November 2017

New Issue

Contacts

Earl Heffintrayer +1.214.979.6860VP-Senior [email protected]

Kurt Krummenacker +1.212.553.7207Senior Vice President/[email protected]

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

Denver (City & County of) CO AirportEnterpriseNew Issue: Moody's assigns A1 to Denver (City & County of)CO Airport Enterprise's Series 2017A and B senior lien bonds

Summary Rating RationaleMoody’s Investors Service assigned an A1 to Denver (City and County of) CO AirportEnterprise’s $276.4 million Airport Revenue Bonds Series 2017A and 2017B (Non-AMT).Concurrently, Moody’s affirmed the A1 on the airport's outstanding senior lien revenue bondsand A2 subordinate lien bonds. The outlook is stable. The city and county operates DenverInternational Airport (DEN).

The ratings reflect the airport's monopoly position in the diverse and growing Denver servicearea that has provided well above average O&D traffic growth in recent years. The ratingsare also supported by the airport’s geographically central location that leads to diversifiedairline service, with United Continental Holdings, Inc. (United, Ba2 stable), Southwest AirlinesCo. (Southwest, A3 stable) and Frontier (WR) all operating connecting service at the airport.Leverage is expected to increase to around $275 debt per O&D enplanement in 2022, whichwould put the airport in the middle range of its peer set given announced capital plans bymost large hub airports. The enterprise’s high proportion of variable rate debt, approximately22%, weighs negatively on the rating. The A2 rating on the subordinate bonds is based onthe subordinate nature of the obligations, as well as the existing hedge and credit facilityobligations secured by the subordinate lien.

https://www.surveygizmo.com/s3/1133212/Rate-this-research?pubid=PBM_1098633

MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE

Exhibit 1

DEN's Airline Cost Per Enplanement will rise consistent with other A1 rated connecting hubs with significant capital plans

0

5

10

15

20

25

2016 2017 2018 2019 2020 2021 2022 2023

Air

line

Cost p

er

En

pla

ne

me

nt ($

)

DEN A1 Median A2 Median

Note: A1 median includes Dallas-Ft Worth, Houston, Phoenix and Seattle. A2 median includes Chicago O'Hare, Miami, and Salt Lake City.Source: Moody's Investors Service

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.

2 20 November 2017 Denver (City & County of) CO Airport Enterprise: New Issue: Moody's assigns A1 to Denver (City & County of) CO Airport Enterprise's Series 2017A andB senior lien bonds


The ratings affirmations reflect the ability of the airport to absorb the larger than expected capital expansion expenditures whilekeeping airline costs competitive with other large hubs, which are also pursuing large capital plans, and the airport’s primary airlinesability to absorb the modest increases in costs. The rapid amortization of the airport’s existing debt is key to keeping leverage lowerthan peers and costs competitive. While current projections based on the airport's assumptions show a weakening coverage in laterperiods of the capital improvement plan, we think the airport is well positioned to outperform the current projected metrics based onthe conservative assumptions in their forecast.

Credit Strengths

» Strong economic growth in the service area provides O&D enplanement strength, with O&D traffic growing 31.4% since 2010

» Continued market share growth from Southwest contributes to greater airline diversity away from traditional reliance on United andFrontier

» Robust liquidity position

» Monopoly position in the growing Denver service area and favorable geographic position for connecting traffic between thesouthwestern and northeastern United States

Credit Challenges

» Sizable capital plan will increase leverage and airline costs and reduce DSCR if consultant's conservative forecast is met

» Relatively high level of variable rate debt (22%) and high negative mark-to-market value of swaps relative to unrestricted cashbalances

» Uncertainty regarding long-term Frontier operation levels

Rating OutlookThe stable outlook is based on our expectation that higher revenue origination and destination (O&D) enplanements will continueto grow despite the loss of connecting traffic that will improve financial performance at the airport and balance higher leverage andconstruction risk associated with the capital plan.

Factors that Could Lead to an Upgrade

» Completion of the capital plan within current cost estimates

» Continued robust O&D enplanement growth

» Sustained growth or stability of Frontier's operations

» Total DSCR above 1.75x on a sustained basis

Factors that Could Lead to a Downgrade

» Total DSCR below 1.15x on a sustained basis

» Significant construction cost overruns or delays

» Material decrease in service by either United or Southwest



Key Indicators

Exhibit 2

Key Indicators

DENVER (CITY & COUNTY OF) CO AIRPORT ENTERPRISE

2012 2013 2014 2015 2016

Enplanement Annual Growth (%) 0.5 -1.2 1.7 1.1 7.9

Debt Outstanding ($'000) 3,811,910 4,398,110 4,284,025 4,112,490 3,905,640

Debt to Operating Revenues (x) 5.2 5.8 5.2 5.2 4.6

Debt Per O&D Enplaned Passenger ($) 216 245 230 206 188

Days Cash on Hand ('000) 691 741 860 842 764

Senior Lien Coverage By Net Revenues (x) 1.56 1.61 1.56 1.51 1.54

Total Coverage By Net Revenues (x) 1.38 1.41 1.34 1.23 1.17

Source: Moody's Investors Service, DIA Financial Statements

Recent DevelopmentsDEN is launching a $3.5 billion, 5-year capital improvement plan to accommodate continued growth. The largest projects will includegate additions on all concourses ($1.8 billion) and improvements to the security and concession areas within the Jeppesen Terminal($1.1 billion, which includes the “Great Hall Project”). Approximately $3.9 million of new money debt is expected to be issued to fundthe capital plan and required reserves.

The city expects the Great Hall Project public-private partnership (P3) with Great Hall Partners LLC (GHP) to reach financial closein early December. The P3 is structured as a “hybrid” P3 with GHP receiving revenues from the improved retail offerings and fromon-going “supplemental payments”, which are essentially availability payments, from the airport. The airport will additionally fundconstruction progress payments throughout the four-year construction period from a combination of bond issuances and airportgenerated revenue. While the P3 provides for significant risk mitigation for the airport by providing for a fixed-price, date certaindelivery method, the airport will retain some portion of construction risk that is typical for P3 agreements. Notably, the airport retainsthe risk of increased costs if security screening protocols change and require alternative construction. The airport will also face the riskof making a termination payment that could range from 80% of GHP’s debt in the case of termination for GHP default to all of GHP’sdebt plus GHP equity return in the case of termination for DEN default. We think that airport has demonstrated sufficient knowledgeof the risk it retains and has evaluated how it will fund any cost exposures and therefore view the P3 to be slightly credit positive due tothe construction risk transfer of the complex project.

The airport continues to see strong enplanement growth in 2017, with enplanements growing 6.3% in 2017 through September overthe same period in 2016.

Detailed Rating ConsiderationsRevenue Generating BaseThe Denver economy has posted solid gains through the decade, seeing substantial increases in personal income and strong populationin-migration, both of which drive demand for origination and destination (O&D) travel at the airport. Among cities that haveconnecting hub airports that we rate, Denver’s 18.8% increase in per capita income since 2010 trails only San Francisco (20.2%)and population growth of 11.7% since 2010 trails only Houston (13.5%). The region has a strong technology sector and also has athriving logistics sector that benefits from the airport. In the near term, housing shortages will lead to higher housing costs and erodea historically low cost of living, dampening in-migration. However, Moody’s Analytics thinks the region is well positioned to achieveeconomic growth above the US over the long term.

Revenues at DEN are predominantly driven by the significant presence of three airlines. United Airlines (United Continental HoldingsInc., Ba2 stable) is the largest airline at the airport, as measured by enplanements, with 42.0% market share in 2016. According to theBureau of Transportation Statistics, DEN served the second most domestic passengers in the United network for the trailing twelve



months ended July 2017, second only to Chicago (City of) IL O’Hare Airport Enterprise (A2 stable). United has been the largest airlineat the airport since it’s opening in 1995 and also has signed the longest use and lease agreement at the airport that runs through 2035.With the signing of an amended use and lease agreement in 2014, United has renewed its commitment to the airport after roughly 10years of declining service. Under the amendment, United has committed service at DEN at a minimum of 9.1% of total United systemavailable seat miles.

Exhibit 3

Airport share of United domesticenplanements

Exhibit 4

Airport share of Southwest domesticenplanements

Exhibit 5

Airport share of Frontier domesticenplanements

ORD

13%

DEN

11%

SFO

10%

IAH

10%EWR

9%

Other

47%

Twelve month ended August 2017Source: Bureau of Transportation Statistics

MDW

7% LAS

6%

DEN

6%

BWI

5%

PHX

5%

Other

71%


DEN

23%

MCO

10%

LAS

7%ORD

4%PHL

4%

Other

52%


Southwest Airlines Inc. (A3 stable) is the second largest airline at the airport by enplanements, having grown its market share to 29.4%in 2016 from 5.3% in 2007. Though Southwest serves a smaller portion on total enplanements at DEN than United, the airport reportsthat Southwest 34.0% served of the O&D passengers at the airport to United’s 27.0% in 2016. DEN represents the third biggest marketin Southwest’s system.

Frontier Airlines also operates significant operations at the airport, accounting for 12.2% of enplanements in 2016, down from 22.7%in 2007. Passenger levels at DEN represent 23.0% of the airline's traffic, making it the largest airport in its network. Frontier continuesto alter its route network as it transitions to an ultra-low cost carrier, and some routes have not even made it a year before they werepulled. The airline announced a plan to increase service at DEN by 50%, however we view that service to be speculative going forwarduntil the airline demonstrates that the routes operate profitably over a series of years.

Despite the volatility of Frontier, the airport’s position as one of the top three airports in three different airlines demonstrates adiversity of significant airline activity that is unmatched at US airports. We view the significant presence of all three airlines to be amitigant to the increased leverage in the capital plan.

DEN faces little competition for O&D travel. The only competition within the greater Denver area is Colorado Springs (City of )CO Airport Enterprise (Baa1 stable). While Colorado Springs has seen growth approaching 30% year over year with addition ofFrontier service early in 2017, the airport’s 788,000 mostly O&D enplanements in the twelve months ending September 2017 pale incomparison to the 18.5 million enplanements that DEN served in 2016. DEN does face competition for connecting traffic from ChicagoO’Hare and Houston (City of) TX Airport Enterprise (reference rating A1 stable), and several airports for Southwest connecting traffic.We think that even with the increases in cost at DEN, the airport will remain competitive with those other facilities that are also seeingairline cost increases due to capital expansion programs.

Operational and Financial PerformanceEnplanements at DEN increased by 7.9% in 2016 after five years of growth at or below 1.7% growth. The sluggish total enplanementgrowth between 2011 and 2015 masked the strong growth of 23.1% in O&D enplanements In addition to traditional airport operations,



DEN has opened the on-site hotel operated by Westin that has met expected targets for revenue generation in its second year ofoperations. In 2016, the hotel was able to achieve net operating revenue of $17.2 million, above the $16.2 million projected by thehotel consultant at the time of the Series 2012 bond sale. Based on year-to-date bookings, the city expects net operating revenue fromthe hotel to increase to $22.1 million in 2017 versus the consultant’s projection of $17.6 million.

Exhibit 6

O&D enplanement growth at DEN has well exceeded national enplanement growth

90

95

100

105

110

115

120

125

130

135

140

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

En

pla

ne

me

nts

In

de

xe

d t

o 2

00

6

All US Airports DEN - All Enplanements DEN - O&D Enplanements

Source: DEN, Bureau of Transportation Statistics

Strong enplanement growth at the airport caused a significant increase in operating revenue in 2016, up 8.0% to $742.5 millionfrom $687.5 million. Increases in concession revenue ($7.7 million, 12.9%) provided the largest gain, followed by facility rentals ($4.4million, 2.1%) and landing fees ($3.4 million, 2.4%). Parking revenue at the airport declined by $1.5 million (0.9%) as the opening ofthe commuter rail to the airport, increased usage of transportation network companies (Uber, Lyft, etc.) and full parking garages servedto limit revenue. Through the first three quarters of 2017, the airport has seen parking revenue decline an additional 1.9%, howeverrecent months have seen parking increases. The city maintains the ability to raise parking rates to mitigate further parking demandloss. Operating expenses, adjusted for non-cash pension expense, increased 5.6% in 2016, but have fallen 2.2% through the firstthree quarters of 2017 given lower maintenance expense. We expect that operating expenses will face inflationary pressure given theincreasing costs of living in the Denver area and the tight labor market.

Debt service coverage ratios by net revenues, adjusted for non-cash pension expense, decreased to 1.17x in 2017 from 1.23x in 2016 asa result in an increase in debt service requirements. Based on the consultant’s forecast provided with this issue, will remain above 1.15times over the forecast period in the base case. We think that consultant's forecast is achievable given cost recovery and conservativeassumptions for both enplanement growth (2.2% over the long term) and financing costs. The revenue forecast for the Great HallProject may prove optimistic, given the lack of comparable spaces in airports that are equally distant from the gate. However, the $10million revenue from the Great Hall in 2022 represents just 0.02x debt service and is not a significant factor in the rating.



Exhibit 7

Total DSCR by net revenue will remain strong in the near term before narrowing in later years ofthe forecast period

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Actual Projected

What could change the rating - UP

What could change the rating - DOWN

Source: Moody's Investors Service

Net revenue debt service coverage differs from the airport’s bond ordinance calculation because the bond ordinance calculationincludes revenues owed to the airlines from revenue sharing and includes all PFC collections as revenues available for debt service,whereas we use net revenues as provided on the financial statements and only include those PFC amounts actually used to pay debtservice. The airline agreement is subordinate to the general bond ordinance and any money owed to the airlines from the revenue-sharing formula pursuant to the airline agreement is first available to pay debt service if needed. We also exclude CFCs, though theycould be used to pay debt service if needed.

LIQUIDITYLiquidity decreased to 764 days cash on hand in 2016 from 842 days cash on hand in 2015. The drop represents both the use ofapproximately $50 million of cash for capital projects and the increased operating expense referenced above. We expect the airportto reduce liquidity to its targets 500 days to fund the current capital plan. In the event that the airport does not generate sufficientrevenue to fund cash portions of the capital, we expect that the airport would increase leverage to maintain the liquidity target.

Debt and Other LiabilitiesDEN currently has roughly $2.8 billion in senior lien revenue bonds and approximately $870 million subordinate revenue bondsoutstanding. The airport is approaching the final maturity of the debt issued to construct the airport in 1995, and as a result, the airportis retiring a significant amount of principal balance each year. Over the next ten years, the airport is scheduled to retire almost $2.1billion of principal, while most debt for the current capital plan, which ends in 2018, has been issued. We expect additional leverageassociated with a longer-term capital plan that addresses capacity constraints. However, we anticipate that leverage will remain nearthe current $200 debt per O&D level. In July, the airport announced it selected Ferrovial Airports to reconfigure the security screeningareas of the Great Hall and to provide additional concession areas, utilizing a public-private partnership framework. We do not expectthe project to significantly alter the credit profile or leverage metrics of the airport.

DEBT STRUCTUREDEN currently has roughly $2.8 billion in senior lien revenue bonds and approximately $870 million subordinate revenue bondsoutstanding. Over the next ten years, the airport is scheduled to retire almost $2.1 billion of principal, which provide the ability add theapproximately $3.9 billion of debt to fund the current capital plan without greatly expanding leverage.



Exhibit 8

Declining existing debt service requirements provide capacity to layer in future debt

-

100

200

300

400

500

600

700

800

2018 2023 2028 2033 2038 2043 2048

An

nu

al D

eb

t S

erv

ice

Req

uir

em

en

ts (

$

mill

ion

s)

Senior - Existing Subordinate - Existing Senior - Expected Subordinate - Expected Third Lien

Source: DEN

Approximately 78% of total debt is fixed rate and 22% is variable, though 20% of total debt is hedged with interest rate swaps. If theairport completes its capital plan as announced, annual debt service requirements will increase significantly. Exhibit 7 demonstrateshow the debt service requirements will increase, however the airport retains flexibility to “wrap” future debt service around existingdebt to minimize annual debt service requirements and airline costs.

DEBT-RELATED DERIVATIVESThe airport's swap agreements are with several counterparties and were undertaken prior to 2007 in accordance with the City andCounty of Denver’s Master Derivatives Policy. The swaps are not a perfect hedge, and the airport may need to make additional floatingrate payments to the extent the tax exempt variable rate on the bonds exceeds the floating rate agreed to in each of the swaps. Theairport retains a unilateral option to terminate the swaps; however a payment may be due from the airport if it opts to terminate.

As of November 1, 2017, the airport’s swap portfolio had a negative mark-to market of $98.8 million across 18 swaps in favor of eightcounterparties. All swaps terminate on or before November 15, 2025, with a remaining average life of 4.5 years. The airport could berequired to post collateral or the swap counterparties could have the right to terminate the swaps if the airport Senior Lien rating wereto fall below Baa2, which could result in a drain on the airports liquidity. Payments, including termination payments due under theswaps, are subordinate to senior lien debt service payments. Given the stability of the airports credit rating, we do not believe theseagreements present a significant credit risk to the airport at this time.

PENSIONS AND OPEBThe airport's long-term defined benefit pension and health care liabilities are not a major factor in our assessment of the airport's creditprofile. Our adjusted net pension liability (ANPL) in 2016 for the airport was approximately $326.3 million, compared to its reportednet pension liability of $158.0 million. Unfunded pension liabilities are moderate in comparison to other airports and to total debtoutstanding of over $3.9 billion. However, increases in pension expense should not significantly impact airline costs going forward.We adjust the reported pension liabilities of entities that report under governmental accounting standards, to enhance comparabilityacross rated issuers. Under governmental pension accounting, liabilities are discounted using an assumed rate of investment return onplan assets. Under our adjustments, we value liabilities using a market based discount rate for high quality taxable bonds, a proxy forthe risk of pension benefits.

Management and GovernanceUnder the city charter, the management, operation and control of DEN are delegated to Denver's Department of Aviation under thedirection of a manager appointed by, and responsible directly to, Denver's mayor. The manager of finance, appointed by the mayor,currently is the chief financial officer and ex-officio treasurer of Denver and is responsible for the issuance of DEN debt and for theinvestment of DEN funds.

In FY14, the airport extended its use and lease agreement with its largest carrier by enplanements, United, from 2025 to 2035. Underthe terms of the agreement, airfield revenues are derived on a residual basis while terminal revenues are based on a commercialcompensatory basis. With the extension, United committed to service levels at Denver, as measured by Denver's share of total United



operations, at FY14 levels and is obligated to pay penalties if service levels dip below the FY14 system share levels. Penalties aregenerally sized to make the airport whole on lost profit (concessions, net parking, PFC, etc.) from the passengers that would havebeen using the facility. The other carriers that operate at the airport have shorter tenured agreements that expire in December 2018.Any new agreements would need to match the business terms of the longer term United agreement. Airlines that do not sign a newagreement would operate as a non-signatory and pay rates a premium to those paid by United.

Legal SecurityNet airport revenues on a parity basis with all other senior bonds. The rate covenant requires gross revenues plus other availablerevenues, including the rolling coverage account, to be sufficient to cover operating and maintenance expenses (O&M) and 125% ofsenior lien debt service and 110% of aggregate debt service. The rolling coverage account is currently funded at 25% of debt serviceand debt service reserves are funded at maximum annual debt service. As per the senior bond ordinance, the airports $4.50 PassengerFacility Charge (PFC) is to be allocated as follows: $1.50 (33%) of the PFC will be included in the definition of gross revenue andthe remaining $3.00 (67%) will be applied as a reduction in the annual debt service requirement. While not pledged, the airport iscurrently using the $1.50 portion to pay debt service. This arrangement extends through the end of fiscal year 2018 and the airportintends to apply PFCs in the same manner through 2020. Senior lien bonds are secured by a cash funded common debt service reserve.Subordinate lien bonds are secured by a series specific debt service reserve fund sized at the standard 3-prong test. Subordinate lienbonds have a cash funded reserve.

Use of ProceedsProceeds of this sale will be used to refund Series 2007A, Series 2007C, and Series 2007D bonds and pay issuance costs.

The current 2018-2022 CIP contains approximately $3.5 billion of capital spending, which is expected to be funded by $3.9 billion ofadditional debt that will begin to be issued in 2018. (The amount of bonds issued above the capital plan value reflects debt servicereserves and issuance costs.) The largest portion of the plan includes $1.8 billion of spending to expand gate capacity on all threeexisting concourses. Concourse A, which serves Frontier and other assorted airlines, including international airline will grow to 44gates from 32 gates. Concourse B, which primarily serves United, will grow to 65 gates from 54 gates. Concourse C, which primarilyserves Southwest, will grow to 44 gates from 28 gates. The gate expansion projects will extend existing concourses into near greenfieldareas, which should minimize operational risks and limit construction risk from modifying existing facilities. The city has entered intocontracts with four experienced contractors and the current estimates reflect contractor input into program pricing. The contractscontain fixed price provisions and also include liquidated damages for late completion.

Obligor ProfileDEN is owned by Denver, and the power to operate, maintain and control DEN is vested in Denver’s airport department. By ordinance,Denver has designated the airport department as an enterprise within the meaning of the state constitution, with the authority to issueits own revenue bonds or other financial obligations in the name of Denver. DEN, the primary asset of the airport system, opened inFebruary 1995, and replaced Stapleton International Airport. The DEN site encompasses approximately 53 square miles located about24 miles northeast of Denver’s central business district. The passenger terminal complex, which encompasses approximately 1.2 millionsquare feet, is reached via a 12 mile dedicated access road from Interstate 70. DENs airfield includes six runways, while the passengerterminal complex consists of a landside terminal and three airside concourses.

Other Considerations: Mapping to the GridThe assigned A1 rating is one notch below the grid indicated rating of Aa3. The grid reflects audited information from 2016. Theassigned rating reflects both lower liquidity and increased leverage expected from the capital plan.

Please see our Publicly Managed Airports and Related Issuers Rating Methodology for information about the limitations inherent togrids.



Exhibit 9

Publicly Managed Airports and Related Issuers Methodology Grid

Factor Subfactor Score Metric

1. Market Position a) Size of Service Area (millions) Aa 3.74

b) Economic Strength and Diversity of Service Area Aa

c) Competition for Travel Aa

2. Service Offering a) Total Enplanements (millions) Aaa 29.14

b) Stability of Traffic Performance Aa

c) Stability of Costs A

d) Carrier base (Primary Carrier as % of Total

Enplanements) A 42

3. Leverage and Coverage a)Debt Service Coverage by Net Revenues Baa 1.17x

b)Debt in USD per O&D Enplaned Passenger Aa $188.0

Metric Notch

4. Liquidity Days Cash on Hand 764 1

5. Connecting Traffic O&D Traffic 65.1 -0.5

6. Potential for Increased Leverage -0.5

7. Debt Service Reserves 0

Scorecard Indicated Rating: Aa3


MethodologyThe principal methodology used in this rating was Publicly Managed Airports and Related Issuers published in October 2017. Please seethe Rating Methodologies page on www.moodys.com for a copy of this methodology.

Ratings

Exhibit 10

Denver (City & County of) CO Airport Ent.Issue RatingAirport System Revenue Bonds, Series 2017A A1

Rating Type Underlying LTSale Amount $255,220,000Expected Sale Date 11/27/2017Rating Description General Obligation

Airport System Revenue Bonds, Series 2017B(Non-AMT)

A1

Rating Type Underlying LTSale Amount $21,175,000Expected Sale Date 11/27/2017Rating Description General Obligation




© 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDITRISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THERELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITYMAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGSDO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’SOPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVEMODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’SPUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOTPROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THESUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATIONAND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FORPURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FORRETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACTYOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW,AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTEDOR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANYPERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as wellas other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information ituses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for anyindirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use anysuch information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of aparticular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatorylosses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for theavoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCHRATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (includingcorporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating,agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintainpolicies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO andrated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually atwww.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s InvestorsService Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intendedto be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, yourepresent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly orindirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion asto the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be recklessand inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or otherprofessional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’sOverseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a NationallyRecognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registeredwith the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it feesranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER 1098633


http://www.moodys.com


CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454


CO Airport Enterprise's Series 2017A and B senior lien ...s - DEN Series 2017...Revenues at DEN are...

Documents

Transcript of CO Airport Enterprise's Series 2017A and B senior lien ...s - DEN Series 2017...Revenues at DEN are...