Rating Action: Moody’s revises outlook to stable and assigns Baa1 to JFK International Air Terminal, LLC’s $1.35 billion Special Facility Revenue Bonds, Series 2022Global Credit Research – 24 Mar 2022Also affirms Baa1 rating on about $893 million of outstanding parity debtNew York, March 24, 2022 — Moody’s Investors Service (“Moody’s”) has today revised JFK International Air Terminal, LLC’s (JFK IAT) outlook to stable from negative, and has assigned a Baa1 rating to JFK IAT’s $1.35 billion New York Transportation Development Corporation Special Facility Revenue Bonds (Terminal 4 John F. Kennedy International Airport Project), Series 2022 (Tax-Exempt/ AMT). Concurrent with this rating action, Moody’s has affirmed the Baa1 ratings on its senior secured debt, including outstanding New York Transportation Development Corporation Special Facility Revenue Bonds (Terminal 4 John F. Kennedy International Airport Project), Series 2020A, 2020B and 2020C.The bonds will be issued by the New York Transportation Development Corporation with JFK IAT as the obligor. The bond proceeds will be used to finance a portion of the Terminal 4 2022 Expansion Project, fund a debt service reserve fund, fund capitalized interest during construction and pay issuance costs. The Series 2022 bonds will be pari passu with the outstanding Series 2020A, 2020B and Series 2020C bonds.Assignments:..Issuer: New York Transportation Develop. Corp., NY….Senior Secured Revenue Bonds Series 2022, Assigned Baa1Affirmations:..Issuer: New York Transportation Develop. Corp., NY….Senior Secured Revenue Bonds Series 2020A, Affirmed Baa1….Senior Secured Revenue Bonds Series 2020B, Affirmed Baa1….Senior Secured Revenue Bonds Series 2020C, Affirmed Baa1..Issuer: JFK International Air Terminal, LLC….Senior Secured Regular Bond/Debenture, Affirmed Baa1Outlook Actions:..Issuer: JFK International Air Terminal, LLC….Outlook, Changed To Stable From NegativeRATINGS RATIONALEToday’s rating action reflects our view that travel demand, especially international flights, at JFK IAT will continue to recover to pre-pandemic levels over the next couple of years, resulting in better financial metrics. Forecast cashflows are also relatively more predictable given nearly all of the total expansion capital costs are recoverable from Delta Air Lines, Inc. (Delta: Baa3, stable) under a concurrent amendment to the Anchor Tenant Agreement (ATA). This ensures debt service coverage ratios in a material downside scenarios will generally remain above 1.50x on cash flow basis, but also increases JFK IAT’s exposure to Delta.The Baa1 rating reflects JFK IAT’s proven resiliency through the recent pandemic owing to its strong Anchor Tenant Agreement (ATA) with Delta that effectively fixes Delta’s payments, protecting JFK IAT from variations in Delta’s enplanements, and providing a floor for performance, as well as management’s actions to save costs and preserve liquidity while maintaining its employee base. The ATA is credit positive as NYC is a key hub for Delta’s operations, providing a high incentive for Delta to continue to pay its lease to operate at the terminal. The ATA with Delta enhances cash flow predictability and protects the terminal during downside scenarios, but also increases JFK IAT’s concentration to a single airline. Delta continues to honor the ATA and will move all of its Terminal 2 domestic operations into Terminal 4 by year-end. Importantly to the project credit quality, Delta is also a 49% owner of JFK IAT. JFK IAT remains the largest international terminal in New York.The Baa1 rating incorporates our expectation that JFK IAT will maintain a strong market position as an essential asset at a capacity constrained airport in the United States’ strongest air travel market. Now that Delta will fully consolidate all of its JFK domestic operations into Terminal 4 from Terminal 2 by year-end, the enplanement base will be more Delta heavy, but more diverse as the number domestic flights increases relative to the number of international flights. Domestic travel has recovered faster than international travel to date. This domestic travel diversity helps offset the increased competition for international travel from the other announced international terminal expansions forecast to be completed at JFK over the next decade. While we expect the operating environment for international travel at JFK to change over the next decade, JFK IAT is well positioned as the “incumbent” international terminal with decades of history working with nearly all of the major international airlines and a reputation for managing their terminal well.OUTLOOKThe stable outlook reflects our expectation that travel demand at JFK IAT will continue to recover to pre-pandemic levels over the next couple of years, generating strong financial metrics, and the construction of the expansion project will be completed relatively on time and on budget with limited impacts on the terminal’s demand recovery.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSFACTORS THAT COULD LEAD TO AN UPGRADE An upgrade is unlikely until JFK IAT’s new market position and financial performance is established in the new competitive operating environment for international travel at JFK after all the announced terminal expansions are completed JFK IAT strengthens its market position in its new competitive environment and its financial performance exceeds our forecast expectations A significant reduction in total debt, coupled with a material increase in revenue diversity away from Delta, and/or a strengthening of Delta’s credit qualityFACTORS THAT COULD LEAD TO A DOWNGRADE Permanent reduction in demand or a material increase in leverage that is not recoverable under the ATA or from likely new revenues to ensure financial metrics remain sound Erosion of market position or change to the competitive environment that weakens financial performance below our forecast expectations Material weakening in Delta’s credit quality that puts in question its ability to honor its obligations under the ATA and JFK IAT is unable to timely replace Delta with other airlinesIssuer ProfileJFK International Air Terminal, LLC is a special purpose entity whose sole business is the operation of Terminal 4 at John F. Kennedy International Airport (JFK) in New York, under a lease with the Port Authority of New York and New Jersey (PANYNJ, Aa3 stable) that expires on May 23, 2043. The terminal is currently indirectly owned by Schiphol USA, a subsidiary of Royal Schiphol Group N.V. (A1 negative), the operator of Amsterdam Airport Schiphol, and by Delta Air Lines, Inc.Rating MethodologyThe principal methodology used in these ratings was Privately Managed Airports and Related Issuers published in September 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1092224. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. 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Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. John Medina VP – Senior Credit Officer Project Finance Group Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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