Research Update: Incheon International Airport 'AA' Rating Affirmed With Stable Outlook; SACP Revised Down To 'bbb' On Subdued Traffic

The prolonged COVID-19 pandemic will weigh on Incheon International Airport Corp.'s (IIAC) passenger traffic recovery, revenue growth, and EBITDA margin over the next 12 months. The company's plan to spend about Korean won (KRW) 4.8 trillion on its Phase 4 expansion project will lift debt in 2022-2024. On Jan. 27, 2022, S&P Global Ratings revised down its assessment of IIAC's stand-alone credit profile (SACP) to 'bbb' from 'bbb+' to reflect uncertainties in the company's pace of operational recovery. At the same time, we affirmed our 'AA' long-term issuer credit rating on IIAC, given that we continue to equalize the rating with our sovereign credit rating on Korea (AA/Stable/A-1+) to reflect our view of an almost certain likelihood of extraordinary government

...- The prolonged COVID-19 pandemic will weigh on Incheon International Airport Corp.'s (IIAC) passenger traffic recovery, revenue growth, and EBITDA margin over the next 12 months. - The company's plan to spend about Korean won (KRW) 4.8 trillion on its Phase 4 expansion project will lift debt in 2022-2024. - On Jan. 27, 2022, S&P Global Ratings revised down its assessment of IIAC's stand-alone credit profile (SACP) to '###' from '###+' to reflect uncertainties in the company's pace of operational recovery. At the same time, we affirmed our '##' long-term issuer credit rating on IIAC, given that we continue to equalize the rating with our sovereign credit rating on Korea (##/Stable/A-1+) to reflect our view of an almost certain likelihood of extraordinary government support. - The stable outlook reflects the stable outlook on the sovereign credit rating on Korea....

Research Update