Research Update: Australia Pacific Airports 'A-' Rating Affirmed, Outlook Stable

Melbourne airport, the major asset of Australia Pacific Airports Corp. Ltd. (APAC), expects to progress with its committed debt-funded capital works of about A$2.5 billion to fiscal 2023. We expect APAC's funds from operations (FFO) to debt to hover at 10% provided capital expenditure (capex) remains within this envelope and the airport registers about 2.5% of annual growth in total passenger traffic. On June 6, 2019, S&P Global Ratings affirmed its 'A-' rating on APAC. The stable outlook reflects our expectations that capital spending will not exceed A$2.5 billion over the next four years, and the potential for APAC to spread the above capex spending rate over a slightly longer period than planned and outperform our forecasts. Our outlook does

...- Melbourne airport, the major asset of Australia Pacific Airports Corp. Ltd. (APAC), expects to progress with its committed debt-funded capital works of about A$2.5 billion to fiscal 2023. - We expect APAC's funds from operations (FFO) to debt to hover at 10% provided capital expenditure (capex) remains within this envelope and the airport registers about 2.5% of annual growth in total passenger traffic. - On June 6, 2019, S&P Global Ratings affirmed its 'A-' rating on APAC. - The stable outlook reflects our expectations that capital spending will not exceed A$2.5 billion over the next four years, and the potential for APAC to spread the above capex spending rate over a slightly longer period than planned and outperform our forecasts. Our outlook does not take into account any capex toward the third runway or uncommitted projects....

Research Update