Airports Company South Africa SOC Ltd - Responds to Moodys Investors Services negative credit rating outlook

Responds to Moody’s Investors Service’s negative credit rating outlook

Airports Company of South Africa SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/004149/06)
JSE Code: BIACSA
(“ACSA”)

Airports Company South Africa responds to Moody’s Investors
Service’s negative credit rating outlook

Airports   Company South   Africa  notes  Moody’s  Investors
Service’s decision to change the company’s credit rating
outlook from stable to negative, emanating from the draft
Permission to levy airport charges for 2015/16 to 2019/20 as
published.

Moody’s Investors Service provided     the   following   “Ratings
Rationale” for the negative outlook:

“The change in outlook reflects the increased risks to the
financial profile of ACSA that stems from a significantly more
challenging   than  anticipated   draft   regulatory  proposal
published on 22 May, which, if implemented in its current
form, would weaken ACSA’s credit profile. If the draft
regulatory proposal is implemented as currently proposed, the
company would be at much greater risk of breaching its Net
Debt   /  EBITDA   financial  covenant   given   the  proposed
substantial year one tariff reduction and limited time to take
remedial actions”.

Airports Company South Africa will continue engaging the
economic regulator and has submitted its formal response to
the draft Permission, which has taken into account the
concerns raised by Moody’s. The final Permission determination
is expected to be received by the end of June 2015.



05 June 2015

Debt Sponsor: The Standard Bank of South Africa Limited

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