Solid market position as the gateway airport to Western Australia Recent declines in both domestic and international traffic Light-handed regulatory framework Forecast FFO to debt at about 9%-10% Sizable capital expenditure to fund terminal redevelopments Financial flexibility to protect credit rating through potential deferral of capital expenditure or shareholder distributions The stable outlook reflects our expectation that Perth Airport Pty Ltd. will maintain funds from operations (FFO) to debt and FFO interest coverage at least 9% and 2.0x, respectively. We anticipate international passengers will grow over fiscals 2015 and 2016, offsetting muted domestic passenger growth. We also expect that Perth Airport will manage its capital expenditure (capex) plan within the current rating expectations. The rating could come under downward pressure
