22-Mar-2010 12:18 PM

Moody's: Australian airport earnings uncertainty could impact credit ratings

Moody's Investor Service stated the Australian Government's recent decision to advance the inquiry on airport regulation would not immediately affect its stable outlook for the sector. It noted regulatory factors were part of its analysis and the review raised uncertainty about the airports' ability to set rates (The Australian, 22-Mar-2010). Transport Minister, Anthony Albanese requested the inquiry be brought forward after a Australian Competition & Consumer Commission report found airports appeared to be benefiting from guaranteed prices.

Moodys: "Uncertainty and possible pressure to reduce charges that currently support the airport's revenue stability could ultimately have a negative impact on credit quality, and potentially ratings, over time," Paul Ovnerud-Potter, Senior Analyst. Source: The Australian, 22-Mar-2010.