"Guam airport granted higher bond rating"

Thursday, October 19, 2006

Airport granted higher bond rating
By Mark-Alexander Pieper 
The Pacific Daily News 


With an improved bond rating the Guam International Airport Authority finds
itself in a position to borrow millions of dollars for airport projects at a
more affordable rate.

At a press conference yesterday, Gov. Felix Camacho announced that Standard
& Poor's improved GIAA's bond rating from BBB minus to an investment-grade
level of BBB with a stable outlook.
   
In 2003 the airport authority's rating dropped to BBB minus, the lowest
rating in the investment-grade category, according to Pacific Daily News
files. A poor credit rating means GIAA bonds are riskier for investors,
which means it will cost the agency more if it wants to borrow. 

"It simply means that when we are ready to go out we'll be able to do more
for less," said GIAA board Chairman Frank Blas Sr.
The higher rating is attributed to GIAA's improvement in its finances and
operations despite dramatic declines in demand following the events of 9/11,
2002's Typhoon Chata'an and Supertyphoon Pongsona, the SARS outbreak and the
United States' conflict with Iraq.

Moody's

Moody's Investors Services also has placed the airport authority on credit
watch for an upgrade and there are "positive indications that Moody's will
take similar actions to those of S&P," according to an airport press
release.
"For four consecutive years, we have directed management to pursue a
continual cost containment policy to maximize revenue potential and we also
managed to decrease operational costs to airlines," Blas said.

"The bottom line is we'll be able to float more money because the interest
rates are lower and we won't (have) to pay as much as last time when our
negative status really cost us to get much higher interest rates."

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