On Oct. 3, 2005, Standard&Poor's assigned its '2' recovery rating (indicating substantial recovery of principal--80% to 100%--in default) to Brisbane Airports Corp.'s (BAC) senior secured debt. This debt currently consists of A$407 million bank debt and undrawn limits. The ratings on BAC reflect Brisbane Airport's secure business position and resilient traffic level, which have resulted in robust cash flows and good growth prospects. Moreover, its history of low equity distributions is supportive, as are the airport's clear and reliable financial policies and targets. The strong security package benefits secured lenders, and limits the possibility of any corporate actions detrimental to their interests. Offsetting these strengths are the company's moderately aggressive financial profile despite an improved capital structure, greater
