Fitch: Florida Airport & Seaport Credit Quality Largely Unaffected By Hurricanes Charley & Frances.

NEW YORK -- The majority of airport and seaport credits rated by Fitch Ratings in the State of Florida sustained little physical damage and only a minor loss of revenues following hurricanes Charley and Frances. However, Greater Orlando Aviation Authority (GOAA), Palm Beach County Department of Airports (PBCDA), Port of Palm Beach District (PPBD), and Canaveral Port Authority (CPA) were directly impacted by the storms, in particular Frances, and consequently experienced more severe damage and a prolonged interruption of business.

Fitch continues to assess the impact that hurricane related revenue losses and pending infrastructure repairs may have on the credit profile of these airport and seaport credits. While it is still to early to definitively quantify the financial ramifications of both storms, management at GOAA management reports estimated facility damage at Orlando International Airport (MCO) could be in excess of $50 million. However, an expected FAA grant, a Florida Department of Transportation (FDOT) matching grant, FEMA monies, and insurance proceeds should cover most of the repair and overtime costs minimizing the affect on the airport's financial operations.

PBCDA incurred approximately $3 million in total damages related to the high wind and heavy rain associated with Frances. Approximately $2 million of the damage involved hangar facilities at two of the department's general aviation airports, while the remaining $1 million took place at Palm Beach International Airport (PBI) and included a damaged main terminal roof and flooded concourses. Of the total hurricane related costs, the department estimates that roughly 80% is eligible for reimbursement from FEMA. From an operations standpoint, PBCDA operating revenues were only minimally impacted by the three-day closure of PBI. Parking transactions, which fell 10% as a result of the storm, were the most negatively affected revenue generating activity. However, with transactions projected to rebound by month's end, and on a revenue basis, parking still a solid 14% ahead of last year's level, Fitch does not believe the storm related decline in parking transactions will negatively impact PBCDA's overall credit profile.

Charley and Frances caused little structural damage and virtually no disruption in operations at PPBD. However, district management did report considerable channel shoaling (a reduction in channel depth). The Army Corp of Engineers is responsible for addressing this condition and is expected to begin necessary dredging within the next two weeks. District management estimates the funding for this $1.2 million project will come entirely from FEMA.

Based on publicly available information, it appears that the CPA experienced the most damage from Hurricane Frances. The port was closed to all traffic for approximately a week due to safety and navigational concerns, with several cruise ships diverted to other ports as a result. Disney's and Carnival's cruise ships that sail from Canaveral returned on the weekend of Sept. 11, with Royal Caribbean's ships expected to return as channel dredging continues. Cargo operations are also open, as are local business establishments. As port personnel has been focused on returning the facility to full operations, the financial implications of this disruption are unknown at this time. Fitch is currently in the process of corresponding with management of PCPA, and will report to the market if it deems new information is credit relevant.

Fitch's Florida airport and seaport ratings portfolio includes the following:

-- Broward County (Ft. Lauderdale-Hollywood International Airport)

-General airport revenue bonds 'A+';

-Passenger facility charge revenue bonds 'A';

-- Jacksonville Airport Authority (Jacksonville International Airport) 'A';

-- Miami-Dade County (Miami International Airport) 'A';

-- GOAA 'AA-';

-- PBCDA 'A';

-- City of Pensacola (Pensacola Regional Airport) 'BBB+';

-- Lee County (Southwest Florida International Airport) 'A';

-- Hillsborough County Aviation Authority (Tampa International Airport) 'A+';

-- CPA 'A';

-- Manatee County Port Authority 'AA-';

-- Broward County (Port Everglades) 'A';

-- PPBD 'A-'.