Moody's pulls Wellington Airport credit rating 'for business reasons'

Thursday 29th October 2015

Moody's Investors Service, the global rating agency, has withdrawn its A2 rating for Wellington International Airport for its own business reasons.

"Moody's has withdrawn the rating for its own business reasons," referring to its policy of withdrawing its oversight relating to its own operations, and which don't reflect on the issuer. Wellington Airport is 66 percent owned by listed infrastructure investor Infratil, with the balance held by the Wellington City Council, and has $75 million of listed bonds paying annual interest of 6.25 percent. The bonds last traded at a yield of 4.1 percent.

Rival rating agency Standard & Poor's has issued the airport with a BBB+ local currency long-term and A-2 short-term rating, which it last review in May last year.

Wellington Airport is lobbying central government to help fund a $300 million extension to its runway, claiming it would attract more long-haul international Asian and North American routes as the domestic market grows increasingly competitive and is undertaking a terminal expansion and adding a hotel to the complex.

BusinessDesk.co.nz

Comments from our readers

No comments yet