This report does not constitute a rating action. Overview Key strengths Key risks Strong market position as the principal gateway to Victoria, Australia's second-largest state. Macroeconomic headwinds could restrain traffic growth relative to our expectations. Diverse inbound markets, which supports continued passenger growth. Elevated capital expenditure (capex) pipeline over the next two to three years. Flexibility over shareholder distributions to help manage credit metrics and support the rating. Large projects, such as the third runway, would require appropriate equity support. Recovery of international passengers for Australia Pacific Airports Corp. Ltd. (Australia Pacific Airports) has been stronger than our expectations. This is mainly driven by the return of Chinese carriers, as well as growth from other key markets such as India,
