The ratings on Brisbane Airport Corp. Ltd. (BAC) reflect Brisbane Airport's strong business position through its natural monopoly, resilient passenger demand, and revenue diversity. Offsetting these strengths are the company's aggressive financial profile and a small catchment area, which has a higher exposure to leisure passengers than its peers, increasing BAC's vulnerability to volatility in that market. Brisbane Airport is Australia's third-busiest airport and a major international gateway to popular tourist destinations in the state of Queensland. The total number of passengers in fiscal 2003 remained about the same as fiscal 2002 at 11.8 million, having fallen by 7.6% in 2002. Twenty-two per cent of the passengers were international passengers, of which 52% traveled for leisure. Notwithstanding the challenges affecting
