The 'BBB' rating on Brisbane Airport Corp. Pty Ltd. (BAC), the owner of Australia's third-largest airport, Brisbane Airport, reflects our view of the airport's "strong" business risk profile. Underpinning the profile is the airport's position as the primary aviation gateway for the state of Queensland (AA+/Stable/A-1+). Offsetting this to a degree is our view of the company's "significant" financial risk profile, which is characterized by relatively high leverage and aggressive cash-flow-coverage metrics. As the main aviation hub for international, domestic, and regional traffic into Queensland, Brisbane Airport's curfew-free operations and reasonably diverse mix of carriers with an extensive network of destinations support its strong business profile. Constraining our view of the business position compared to other major Australian airports are:
