Tuesday 03 April 2018 by FIIG Research Company updates

Sydney Airport upgrade - March 2018

We have a provided an update on Sydney Airport’s S&P upgrade, and reiterate our recommendations on its CPI+3.76% notes due 2020 and its CPI+3.12% notes due 2030. The credit outlook remains Positive.

Key points:

  • On 27 March 2018, S&P upgraded the ratings on Sydney Airport, aligning them to Moody’s ratings.
  • S&P cited greater confidence in the stability of the company’s financial policies, including its current practice of distributing 100% of operating cash flows. S&P also expects passenger growth to continue, which will support earnings growth
  • With both S&P and Moody’s aligned, we believe the company’s CPI-linked notes continue to offer fair relative value

The full report is available on the FIIG website to wholesale and retail FIIG clients.