Auckland Airport's credit rating outlook improves 27 Sep 2012
- Trade Me buys MotorWeb site for $19.5M to expand auto offer Business
- UPDATED: Wheeler gives clear signal OCR is set to rise Business
- Vector loses key elements of Commerce Commission challenge Business
- Stronger terms of trade could drive interest rates up: RBNZ Business
- RBNZ sees strong house price inflation lasting longer Business
- Wheeler keeps OCR at 2.5%, ready to hike 'as needed' Business
- NZ dollar falls ahead of Reserve Bank interest rate decision Business
- MARKET CLOSE: NZ shares slip on Fonterra dividend cut Business
- Housing Accords work for Christchurch, Wellington, Tauranga News
- Synlait Milk flags faster growth in 2014 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.
11 Dec 2013 News
New Zealand Government 2.15 million people sign up as KiwiSaver continues to grow Revenue Minister Todd McClay today released the... more
11 Dec 2013 Business News
Article - BusinessDesk Fonterra units sink back to issue price as product squeeze hurts dividend, earnings outlook By Jonathan... more
11 Dec 2013 Entertainment
Sounds Like Waitangi - Greg Johnson, Andrew Fagan & Peter Urlich headline Waitangi Day at Mangawhai Tavern Sounds Like Waitangi... more
10 Dec 2013 Lifestyle
Dunedin City Council Here’s Your Chance to be a Rock Star! Dunedin (Tuesday, 10 December 2013) – If you’re a... more
11 Dec 2013 Property
New Zealand Government Hon Dr Nick SmithMinister of Housing 11 December 2013 Housing Accords work expanded to Christchurch, ... more
9 Dec 2013 Property
Auckland property values continue to surge ahead, up 15.2 per cent in the last year. QV has
10 Dec 2013 Migration
Doing Our Bit Costs, benefits, rugby and refugees Murdoch Stephens – Doing Our Bit (www.doingourbit.co.nz) Amongst all... more
10 Dec 2013 Travel & Tourism
Article - BusinessDesk Air New Zealand expects 1H pre-tax earnings of $166.8 mln, on target to exceed FY earnings By Tina... more
11 Dec 2013 Motor Sport
Cody's D1NZ National Drifting Championship Rnd 2 The Toll Concrete Jungle RacewayRewa Rewa RdWhangareiS... more
10 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the latest TPP leaks, and our shabby treatment of asylum seekers by Gordon ... more
9 Dec 2013 People
In less than a year, Lorde has gone from a Year 12 student at Auckland's Takapuna Grammar to a global pop star. The Kiwi's... more
11 Dec 2013 Recruitment
CPIT For immediate release 11/12/2013 Partnership provides much needed skills for the rebuild As the demand for rebuild workers... more