The ratings on Brisbane Airport Corp. Pty Ltd. (BAC) primarily reflect our opinion of the Australian airport's strong competitive position as the main aviation hub for the state of Queensland (AA+/Stable/A-1+), and the company's resilient and somewhat diverse revenue base. Also underpinning the ratings is BAC's prudent management and track record of generally exceeding financial policies and targets. Offsetting these strengths, in our opinion, is BAC's aggressive capital structure, weak financial metrics, and reduced financial flexibility. In addition, BAC faces significant risks associated with its large—albeit somewhat deferred—capital-expenditure program. Brisbane Airport's strong competitive position as the main aviation hub for Queensland is underpinned by the airport's catchment area and the diverse mix of airlines that fly to and from an
