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Car rental - Downgraded Bonds for Airport car rental facility

Car rental - Fitch Ratings on Thursday downgraded the bond at the airport in Atlanta for the new rental car facility, reflecting the downturn in the economy and a corresponding decrease in the car rental business.

Fitch is now listed $ 221 million in outstanding revenue bonds from BBB +, from A-. The rating outlook has been revised to negative from stable. The bonds were issued in 2006.

The new car rental facility (known as CONRAC) is under construction adjacent to the Georgia International Convention Center in College Park, and connects to Hartsfield-Jackson Atlanta International Airport to the people through an automated system for motor.

Falling bond CONRAC has no impact on a push through the airport to re-enter the bond market up to $ 800 million in financing to continue construction of the new Maynard Holbrook Jackson International Terminal.

The airport is also looking to refinance up to $ 590 million in the current international terminal in general revenue bonds at a better interest rate.

The gradient on the ratings reflect the car rental facility drop in business of car hire companies and the potential reduction in customer premises burden of revenue from passenger fees, when a car rental.

CONRAC is expected to open in the fall. Passenger traffic is expected that 2 percent to 3 percent dip in 2009, but the operations of rental vehicles is expected that 16 percent fall sharply from 2008 levels. Currently, car rental transactions are down 10 percent.

"The lowering of the rating and APM CONRAC bonds is based on a higher risk profile weaker than expected levels of coverage and an expected increase in the CFC project as higher than anticipated construction costs and the recent decline in car rentaltransactions, "Fitch said.- car rental