The ratings on Aer Rianta, the 100% state-owned Ireland-based airports operator, reflect its dominant position in the Republic of Ireland (AA+/Positive/A-1+) and limited competition from other airports owing to its geographical position. The ratings also reflect the company's strong commercial skills, a high level of origin-destination passengers, and strong economic growth in Ireland. Offsetting these strengths are uncertainty about future aeronautical tariffs, a new and untested regulatory regime, increasing leverage, and, in 2000, a high proportion of commercial revenues relative to aeronautical revenues. Aer Rianta's ratings are based on its stand-alone credit quality--Standard & Poor's has not incorporated any uplift for government support. This reflects an expected laissez-faire policy environment, a depoliticized tariff regime, and no debt guarantees, although indirect
