S&P cuts Auckland Airport outlook

Last updated 15:19 03/12/2013

Relevant offers

Industries

Business briefs: Chorus earnings Need to know: Thursday, April 24 Gold production continues at Macraes Pair deny defrauding finance firms of millions Migration nears record levels FMC faces claim over property loan losses Maori Land Court orders $14m to land trust Georgie Pie serves McDonald's well Kiwi gets a boost from Aussie inflation Plans for direct flights from the Philippines

Auckland International Airport's credit rating outlook has been lowered from positive to stable by ratings agency Standard & Poor's.

Standard & Poor's credit analyst Thomas Jacquot said the outlook revision was because of the airport's plan to return $454 million in capital to shareholders, which would be largely funded by debt.

"The increase in debt will drive a relative weakening of the key financial metrics over the short term, in relation to our prior expectations, although this deterioration is not severe enough to result in the ratings being under downward pressure," he said.

Despite the outlook revision, Standard & Poor's affirmed the airport's long-term credit rating of A minus.

Jacquot said it was unlikely the company's credit rating would improve in the next two years.

The agency said it believed the airport would maintain its "excellent business-risk profile".

However, the airport's rating could come under pressure if it increased its expected capital-expenditure programme in the next two to three years, which would result in higher debt levels.

Ad Feedback

- © Fairfax NZ News

Special offers

Featured Promotions

Sponsored Content