Research Update: Brisbane Airport Corp. 'BBB' Ratings Affirmed, Outlook Revised To Stable On Firming Passenger Recovery

Fewer domestic and international travel restrictions, high domestic vaccination rates, and the easing of pandemic social distancing measures will continue to support the recovery in passenger numbers toward pre-pandemic levels. Based on our traffic estimates, Brisbane Airport Corp. Pty Ltd.'s (BAC) cash flows will progressively strengthen over the next 18 months. With improving cash flows and benefits from swap restructuring up until and including fiscal 2023, we forecast the ratio of funds from operations (FFO) to debt at about 11%, while capital management is likely to keep this ratio at 9%-10% in the later years. On July 28, 2022, S&P Global Ratings revised its outlook on BAC to stable from negative. At the same time, we affirmed our 'BBB' long-term

...- Fewer domestic and international travel restrictions, high domestic vaccination rates, and the easing of pandemic social distancing measures will continue to support the recovery in passenger numbers toward pre-pandemic levels. - Based on our traffic estimates, Brisbane Airport Corp. Pty Ltd.'s (BAC) cash flows will progressively strengthen over the next 18 months. With improving cash flows and benefits from swap restructuring up until and including fiscal 2023, we forecast the ratio of funds from operations (FFO) to debt at about 11%, while capital management is likely to keep this ratio at 9%-10% in the later years. - On July 28, 2022, S&P Global Ratings revised its outlook on BAC to stable from negative. At the same time, we affirmed our '###' long-term issuer credit rating on BAC and issue rating on the airport's debt. - The stable outlook reflects the accelerating pace of the recovery in passenger traffic after Australia eased domestic and international border restrictions. The outlook...

Research Update