| News Release | Tuesday September 19, 2000 |
Macquarie Bank, the financial adviser to Adelaide Airport Limited (AAL), today congratulated the Airport on achieving a credit rating of BBB/Stable from Standard and Poor's and Baa1 from Moody's Investors Service. The international credit ratings are the strongest for a privatised Airport in Australia.
Macquarie Bank's Executive Director of Project and Structured Finance, Kerrie Mather, said the credit ratings were even more encouraging given that AAL has achieved them prior to construction of a new $220 million terminal.
"This is a strong outcome for AAL because the ratings are the best for a privatised Australian airport, despite the soon to commence $220 million construction of a new terminal. The ratings will allow AAL to pursue a capital markets issue as part of its $480 million borrowing program, which has been strongly contested by several banks."
"In awarding the high ratings, the agencies noted the stability of the domestic passenger forecasts, the stimulation to domestic passenger numbers due to the introduction of new carriers, and the introduction of an Airport passenger facility charge to help recover the costs of the new terminal," she said.
The Managing Director of AAL, Mr Phil Baker, said the high credit ratings were great news for South Australia and business in the state because it made it easier and cheaper for the airport to raise money and reflected the strength of the underlying South Australian economy.
Adelaide Airport was privatised in 1998. Construction of the new $220 million terminal is forecast to create 900 jobs and inject an up to $471 million a year into South Australia's economy. Construction is due to commence in February 2001, with completion in late 2002.
Macquarie Bank's Project and Structured Finance Division is the financial adviser to Adelaide Airport's borrowing program to raise $480 million to finance both construction of the new terminal and restructure its existing debt.
For further information contact:
| Kerrie Mather, Executive Director, Macquarie Bank | 02 8232 3584 |
| Phil Baker, AAL Managing Director | 08 8308 9307 |
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