Princess Juliana Intl Airport Op Company N.V. — Moody’s announces completion of a periodic review of ratings of Princess Juliana Intl Airport Op Company N.V.
Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of Princess Juliana Intl Airport Op Company N.V.Global Credit Research – 11 Feb 2022New York, February 11, 2022 — Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Princess Juliana Intl Airport Op Company N.V. and other ratings that are associated with the same analytical unit.
The review was conducted through a portfolio review discussion held on 9 February 2022 in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.
Moody’s views the credit quality of Princess Juliana International Airport Operating Company N.V.’s (PJIAE) senior secured notes (Notes) constrained by the strain from the coronavirus pandemic on passenger traffic and PJIAE’s liquidity, which has led it to rely on cash transfers from the Government of St. Maarten (Ba2) to cover its operating expenses.
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Supporting the credit profile is the transaction structure that allows for debt service payments to be made with airport departure fees (ADF) revenue before making distributions to PJIAE to cover its operating expenses. Nonetheless, the uncertainty surrounding the degree and timing of the recovery in traffic remains a key credit consideration.As a Government-Related Issuer (GRI), PJIAE’s credit quality incorporate Moody’s assessment of a “high” default dependence on and a “strong” likelihood of potential extraordinary support from the St. Maarten government, which translates into a two-notch uplift from the airport standalone credit profile, as reflected in its Baseline Credit Assessment (BCA) of b3.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodologies used for this review were Privately Managed Airports and Related Issuers published in September 2017 and Government-Related Issuers Methodology published in February 2020. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings.
Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Adrian Garza Vice President – Senior Analyst Project & Infrastructure Finance Moody’s de Mexico S.A. de C.V Ave. Paseo de las Palmas No. 405 – 502 Col. Lomas de Chapultepec Mexico, DF 11000 Mexico
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