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+), which is key to our view of the relative stability of its revenue streams. Also important to our rating are the demonstrated supportiveness of BAC's shareholders who deferred distributions from early 2009 until first fiscal quarter ended Sept. 30, 2012, and management's prudent approach to growth. These strengths are offset to a degree by the company's significant financial risk profile, which is characterized by relatively high leverage and aggressive cash-flow-coverage metrics. As the main
