...July 23, 2025 This report does not constitute a rating action. Capex headroom: Australia Pacific Airports Corp. Ltd.'s A$1 billion hybrid issuance in June 2025 has increased the metrics headroom. We believe the ratings on the company can absorb capital expenditure of A$1 billion per year. Additional spend can be accommodated with shareholder support in the form of dividend deferrals or new equity contributions. New agreements: As the current pricing agreement (2023-2025) has ended in June 2025, Melbourne airport is focusing on new tariff and commercial agreements related to its third runway. These should conclude soon. Aero capex during 2023-2025 will likely lead to a substantial increase in charges, which will result in higher aero revenues. Shareholder dispute: On May 15, 2025, Australia Pacific Airports issued a default notice to Dexus (a fund that owns 27% of the company) for a breach of the shareholders' deed. The default notice requires the commencement of a compulsory process to...
