The ratings on Brisbane Airport Corp. Ltd. (BAC) reflect Brisbane airport's strong business position through its natural monopoly, resilient passenger demand, revenue diversity, and supportive regulatory environment. Offsetting these strengths is the company's weak financial profile, the airport's vulnerability to volatility in international passenger numbers, and the high exposure to leisure passengers. Brisbane airport is Australia's third-busiest airport and a major international gateway to the popular tourist destinations in the state of Queensland. The total number of passengers in fiscal 2002 declined by 7.6% to 11.8 million Twenty-two per cent of these were international passengers, of which 75% traveled for leisure. The reduction in traffic was comparable to the reduction in traffic at BAC's Australian peers' airports, although not as
