Incheon International Airport Corp.

Along with sluggish passenger traffic demand, we anticipate the relief measures will further pressure IIAC's revenue growth and profitability. We forecast IIAC's revenue will fall another 30%-40% in 2021 and the company will record negative EBITDA margins over the period. However, we expect the company's revenue and profitability to gradually recover after 2021 and return to pre-pandemic levels, in line with a full recovery in traffic volumes by 2024. The stable outlook on IIAC reflects the outlook on the sovereign credit rating on Korea. This reflects our expectation of an almost certain likelihood that the government will provide the company with extraordinary support, in the event of financial distress. The rating on IIAC will move in tandem with that on

...We expect Incheon International Airport Corp. (IIAC) will receive an almost certain likelihood of extraordinary support from the government of South Korea. IIAC is the sole operator and developer of Incheon International Airport, the major gateway airport to South Korea. We believe IIAC executes a critical role for the government, given its contribution to the economy through international trade and national security, and has an integral link with the government, which wholly owns the company. In our opinion, the government of Korea will provide IIAC with timely and sufficient support in the event of financial distress. Thus, we equalize the long-term issuer credit rating on IIAC with that on Korea (##/Stable/A-1+). IIAC should maintain its market position in South Korea and remain the leading airport in Northeast Asia. Given its dominant position as a gateway airport, we believe IIAC will maintain its near-monopolistic position in Korea in the medium to long term. IIAC was the third-largest...

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