Irish airport operator DAA PLC achieved strong operational growth in 2016, with revenues increasing by 17% and reported EBITDA by 20% as a result of traffic growth at Dublin and Cork airports reaching about 30 million passengers. We expect DAA to continue delivering strong credit metrics, despite its large investments, higher dividends, and potential tariff reduction in the next regulatory period. Therefore, we are revising the outlook on DAA to positive from stable and affirming our 'A-' long-term corporate credit and issue ratings on the company. The positive outlook reflects our expectation that DAA will maintain adjusted funds from operations to debt above 30% despite its significant investment plans, higher dividend distribution, potential tariff decline, and uncertainties related to the
