The bonds are secured by revenues generated by a daily customer facility charge (CFC) levied on each rental contract for vehicles rented at DFW. Revenues and net revenues for DFW are not pledged to the payment of the rental car bonds.

The Rating Outlook revision to Stable from Positive reflects the nearly 15% decline in the 10-month year-to-date fiscal 2009 (October-July) transaction days and revenues that are almost 3.0 times (x) higher than DFW's enplanement declines over the same period. Rental car transaction days have proven to be more sensitive to economic cycles than airport passenger volumes since renting a car is less essential than air travel. In addition, given the narrower scope of rental car customers, transaction days have traditionally captured only 30%-40% of origination and destination (O&D) traffic. Despite the transaction volatility, the rental car facility has generated sufficient cashflow to build total reserves to approximately $34 million. While nearly $20 million of the funds will be drawn down over the next few years to fund bus replacement, it is Fitch's expectation that this liquidity coupled with the coverage account and the flat-to-declining annual debt service obligations should provide sufficient financial cushion at the current rating level. Fitch also notes that the Wright Amendment, which currently limits service at Dallas Love Field National Airport will be repealed effective 2014, and could become a source of competition for DFW's O&D traffic in the Dallas-Fort Worth market.

The 'BBB+' rating is based on the demand for rental cars generated by the sizeable underlying market area served by DFW and several cash funded reserve funds that provide enhanced liquidity for the bonds. The bonds benefit from a flat-to-declining debt service profile with no additional borrowing expected in the next one-to-five years, as well as minimal near-term capital expenditures. In addition, competition from other modes of transportation is limited.