Perth Airport's liquidity has improved as it has reduced its planned capex due to weak traffic growth. We are affirming our 'BBB' corporate credit rating on Perth Airport. The stable outlook reflects our expectation that Perth Airport will maintain FFO to debt and FFO interest coverage of at least 9% and 2.0x, respectively. On Oct. 20, 2016, S&P Global Ratings affirmed its 'BBB' long-term corporate credit rating on Australia-based Perth Airport Pty Ltd. The outlook remains stable. We have revised our assessment of Perth Airport's liquidity to strong from adequate. None of the ratings on Perth Airport are affected by the change in assessment. The stronger liquidity assessment primarily reflects the recent reductions in capital expenditure (capex) that the company
