...- We expect passenger traffic to recover to pre-pandemic levels in Dublin and Cork airports in 2023 and 2024, which will boost daa PLC's cashflows and support the long-term sustainability of credit metrics at the current rating level, with adjusted funds from operations (FFO) to debt remaining above 20% in 2023 and 2024. - However, we anticipate that the investments to increase capacity at Dublin airport will erode some credit metrics headroom, resulting in FFO to debt of 17% on average in 2025-2027, which reduces our view of rating upside, but is nevertheless still commensurate with the rating. - We also think that Dublin airport charges, adjusted annually for actual inflation, will mitigate inflationary pressures and support EBITDA margins of about 30% over the next three years. - We have therefore revised our outlook on daa to stable from negative and affirmed our 'A-' long-term issuer credit and issue ratings, as well as the 'A-2' short-term issuer credit rating. - The stable outlook...
