Under current conditions, a "notable amount" of debt repayment risks remain for Denver Airport System Revenue Bonds, and the bonds are not suitable for risk-adverse investors, according to a Kemper Securities Inc. research report.
While the report notes a number of positive developments for Denver International Airport, including the airport's strategic importance in the nation's airline system and its depiction as an efficient and functional airport upon completion, the report did highlight a number of risks.
Published August 12, the report says a number of factors, such as the final project costs, opening date, tenancy, and annual operating and maintenance costs, are still unknown and could be affected by unfavorable conditions that currently exist.
The report notes that the official opening of the airport has been moved to Dec. 19 of this year from Oct. 29. And while 75% of the construction had been completed by May, the projected costs have escalated to $2.83 billion from $2.7 billion.
