S&P: Auckland Airport Results As Expected

Monday February 23, 9:38 AM 

PRESS RELEASE: S&P: Auckland Airport Results As
Expected

Following is a press release from S&P: 

MELBOURNE (Standard & Poor's) Feb. 23, 2004--Standard
& Poor's Ratings Services said today that Auckland
International Airport Ltd.'s (AIAL; A+/Stable/A-1)
results for the six months to Dec. 31, 2003, primarily
reflected the continuing robust growth in passengers
using New Zealand's main airport facility. The
reported net profit after tax of NZ$45.2 million
(representing an increase of just under 14% on the
equivalent period in the previous year) was broadly in
line with Standard & Poor's expectations, and, as a
result, there are no immediate ratings implications of
today's announcement. 

"Auckland Airport has seen strong year-on-year growth
across both its international and domestic passenger
activities, including transfer and transit. The 12.2%
increase in passenger movements in the first half of
fiscal 2004 has resulted in 5.3 million passenger
movements, which underlines the continued attraction
of New Zealand as an international destination and,
importantly, Auckland as the primary gateway to the
country," said Standard & Poor's credit analyst
Jonathan Manley, associate director, Corporate &
Infrastructure Finance Ratings. "In addition, the
aeronautical income has been strongly supported by
growth in both retail and rental revenues, which
provide some diversity to earnings. Attention is now
focused on AIAL's upcoming refinancing of its NZ$165
million of MTN facilities due in April 2004 and the
company's intention to improve the maturity profile of
its debt structure through the refinancing." 

AIAL owns and operates Auckland Airport and its
ratings are supported by the airport's key strategic
position as a natural monopoly and the major
international gateway to New Zealand. Furthermore, the
airport's demonstrated robust demand, despite the
recent industry shocks within the sector, and defined
revenue path through the recently agreed aeronautical
charging structure support AIAL's credit quality.
However, these strengths are offset by the company's
significant exposure to Air New Zealand Ltd.
(B/Stable/--), AIAL's moderate financial profile, and
aggressive shareholder distribution practice. 

Contact: Jonathan Manley, Melbourne (61) 3-9631-2046 

Mark Legge, Melbourne 61-3-9631-2041 


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************