The ratings on Brisbane Airport Corp. Pty Ltd. (BAC), the owner of Brisbane Airport—Australia's third-largest airport, reflect our view of the airport's strong competitive position as the primary aviation gateway into the state of Queensland (AA+/Stable/A-1+) and BAC's stable and diverse revenue profile. Other key factors underpinning the ratings include BAC's supportive shareholders and management's prudent approach to growth. Partly offsetting these strengths is BAC's constrained financial flexibility (reflecting the company's significant capital-expenditure program), leveraged capital structure, and weak cash-flow-protection metrics. As the main aviation hub for international, domestic, and regional traffic into Queensland, Brisbane Airport's strong business position is supported by its curfew-free operations and diverse mix of carriers with an extensive network of destinations. Also aiding the airport's
