daa PLC

The negative outlook on daa reflects the uncertainties about the extent of the drop in traffic volumes and the pace and shape of the recovery due to COVID-19-related mobility restrictions. Further negative consequences for passenger traffic and retail revenue could arise from the pandemic's impact on Ireland's macroeconomic environment, given the correlation between disposable incomes and leisure travel. In our base case, we expect daa to maintain weighted-average adjusted FFO to debt of 12%-15% in 2022-2023. The credit metrics will depend on daa's recovery path and completion of significant investments. Additional negative effects could occur because 30% of daa's passengers come from the U.K., which is still suffering from uncertainties related to Brexit. We could lower the rating by at

...S&P Global Ratings expects that daa's recovery path will remain volatile. We forecast daa's 2022 passenger volumes will be 60%-65% of 2019 levels, 2023 volumes about 80%-85%, and 2024 90%-95%. Combined with the airport's high proportion of intra-European leisure traffic, we expect daa's traffic recovery will be supported by the loosening of mobility restrictions in Western European countries, including Ireland, in January 2022. However, we anticipate that the recovery path will continue to be volatile and depend on consumers' ability and willingness to travel amid the risk of potential new COVID-19 variants....

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