Incheon International Airport Corp.'s (IIAC) operating performance and financial ratios are likely to keep improving over the next 24 months, backed by steady growth in passenger traffic. We expect IIAC's ratio of funds from operations (FFO) to debt to recover to 14%-20% in 2024-2025, compared with 14.5% in 2023. As a result, we revised up our assessment of IIAC's stand-alone credit profile (SACP) by one notch to 'a-' from 'bbb+'. We affirmed our 'AA' long-term issuer and issue credit ratings on IIAC, the sole operator and developer of Korea's primary airport. The stable rating outlook on IIAC reflects the outlook on the sovereign credit rating on Korea. In 2024, annual passenger traffic recovered to 100% of its 2019 level, exceeding
