10 Aug 2009

A- rating for airport bond issue

12:17 pm on 10 August 2009

Standard & Poors has given an A minus rating to a $25 million bond issue by Auckland International Airport Ltd.

The unsecured seven-year bonds carry an interest rate of 8% per year.

The international credit rating agency says the rating reflects the company's monopoly position, strong passenger demand and diverse income stream, which offsets the risk of lower patronage on its financial position.

The company is using the money to bolster its balance sheet.