Auckland Airport's credit rating outlook improves 27 Sep 2012
- MARKET CLOSE: NZX50 falls to two-month low as Chorus drops Business
- NZ dollar heads for 1.4 percent weekly gain vs. Aussie Business
- FMA almost done in settlement with Strategic Finance Business
- Epsom women wished well News
- NZDF receives new trucks in record time News
- Supercars and Highlands headline 2014 UDC V8 Ute Series Sport
- NZ ETS to restrict Kyoto Protocol units from 2015 Business
- Supreme Court tosses out Gull appeal over $23M butane blend Business
- External Reporting Board Appointment News
- Bank of New York Mellon trims holding in embattled Chorus Business
Auckland Airport's credit rating outlook 'positive' on smaller capital spending programme
By Paul McBeth
Sept. 27 (BusinessDesk) - Auckland International Airport, the country's biggest gateway, has had its credit rating outlook upgraded to 'positive' by rating agency Standard & Poor's due to a smaller-than-expected spending programme to cope with congestion at its domestic terminal.
The global rating agency affirmed the airport's A-/A-2 issuer credit ratings and said it could be lifted one notch in the coming year because of a less intensive short-term capital expenditure programme. S&P expects the airport's debt to be about $100 million lower than previously forecast by 2015.
"We had assumed that a significant step-up in AIAL's capital expenditure would occur over the coming five years, driven by the construction for the new domestic terminal and, toward the end of our forecast, the start of the works for the second northern runway," credit analyst Thomas Jacquot said.
"As part of its consultation with the airlines regarding its proposed new tariffs, AIAL has instead decided to pursue a shorter-term, less capital-intensive solution concerning the congestion issues at the domestic terminal, while continuing its consultation regarding its longer-term new terminal facility plans," he said.
Auckland Airport spent some $83.1 million on capital works last year, and expects capital expenditure of between $100 million and $110 million in the current financial year, $66 million of which is on airside improvements.
The airport's rating faces some short-term uncertainty over the Commerce Commission's review of the existing regulatory environment, and the positive outlook may be removed if the antitrust regulator doesn't keep the current light-handed regime.
The rating agency expects subdued passenger growth in the short-term, assuming compound annual growth rate of 2.6 percent in international passengers over the next three years, and 1.3 percent for domestic passengers. That compares to a 4.4 percent annual compound growth rate in international passengers over the past five years, and 2.1 percent for domestic passengers.
Auckland Airport's shares rose 0.4 percent to $2.635 today, and have gained 5.2 percent this year.
6 Dec 2013 News
New Zealand First was saddened to hear of the death of Nelson Mandela, South Africa’s first democratically elected... more
6 Dec 2013 News
Prime Minister John Key today expressed his sadness at the death of former South African President Nelson Mandela. “Nelson... more
6 Dec 2013 Business News
Article - BusinessDesk Chatham Rock granted mining permit for Chatham rise, still needs EPA sign-off Dec. 6 (BusinessDesk) - ... more
5 Dec 2013 Business News
Article - BusinessDesk SkyCity earnings to get kicker from Adelaide redevelopment in 2017, brokerage says By Tina ... more
6 Dec 2013 Arts
Audio Foundation Audio Foundation Artist Residency program 2014 awarded The Audio Foundation is pleased to announce Thomas Lambert... more
5 Dec 2013 Entertainment
Two true Kiwi legends – Dave Dobbyn and Don McGlashan – have come together on stage for the first time, and this weekend... more
4 Dec 2013 Property
Auckland house prices rose at the rate of $677 a day in November, based on the average price increase from October to... more
4 Dec 2013 Property
New Zealand Government Hon Dr Nick SmithMinister of Housing 3 December 2013 Bill to rein in housing development charges passes first... more
4 Dec 2013 Migration
The typical Kiwi on Census day 2013 was aged 38, earned $28,500 a year, worked in a service job and owned his or her own... more
4 Dec 2013 Travel & Tourism
Afghanistan, North Korea and Somalia are seen as the world's most corrupt countries while Denmark and New Zealand are nearly ... more
6 Dec 2013 Rugby
The International Rugby Board and the global Rugby family have been paying tribute to Nelson Mandela, who passed away today.The... more
6 Dec 2013 Motor Sport
NZV8 Ute Racing Supercars and Highlands headline 2014 UDC V8 Ute Series A fifth year on the bill for the V8 Supercars and an opening... more
6 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on oil drilling permits, and Iris Dement by Gordon Campbell Yesterday, the ... more
5 Dec 2013 Column
It is hard to feel sorry for John Banks. Sorry, I’ll start that again. It would be easy to feel sorry for John Banks in his ... more
2 Dec 2013 People
Universal College Of Learning Media Release Monday 2 December 2013 UCOL salutes its Top Scholars UCOL Bachelor of Nursing... more
29 Nov 2013 Recruitment
Article - BusinessDesk Unemployment to hit 4% by 2021, says MBIE Nov. 29 (BusinessDesk) – Job growth and higher... more