Overview Key strengths Key risks Strong market position as the principal gateway to Victoria, Australia's second-largest state. Failure of passenger traffic to recover to pre-COVID-19 levels, particularly international, in the light of current economic headwinds. Solid passenger traffic base (about 38 million pre-COVID-19) with diverse inbound markets. Stretched balance sheet that will need discipline in cost, capex, and distributions until at least fiscal 2023 to reach FFO-to-debt ratio of more than 8%. Flexibility over capex and shareholder distributions to manage credit metrics and support the rating. Limited balance sheet capacity to undertake potential large capex, like the third runway, without appropriate equity support. Based on trends at the airport, the major asset of Australia Pacific Airports Corp. Ltd. (APAC), over
