A.B. Won Pat International Airport Authority, Guam

Moody's Investor Services, in a ratings update released on January 11, 2017 affirmed its "Baa2" rating on the A.B. Won Pat International Airport, Guam's 2013 $227 million in Series 2013 A, B and C General Airport, with a stable outlook. The rating is supported by the Airport being the only civilian airport serving Guam and an airport hub of Micronesia, and the "airport’s residual ratemaking framework which allows for full recovery of operating and certain capital costs," the Moody's release stated.

"We are fully self reliant on our revenues and fiscally responsible, meeting our operational and capital improvement requirements while maintaining the cost to do business for our airline operators. Improving efficiency and maximizing revenue while controlling costs is core in the development of our budget. Projected revenues and expenditures are annually reviewed by our signatory airlines, so that they are aware of expenditures for the upcoming year and fully participate in the creation of our Annual budget," stated Charles H. (Chuck) Ada II, Executive Manager of the Airport Authority. Signatory airlines of the Airport Authority are those airline operators who commit to maintaining a frequency of scheduled of flights to Guam. In return, signatory airlines benefit from discounted rates on per passenger fees assessed by the Airport to fund its operations.

Moody's latest rating acknowledged the ability of the airport to maintain fairly stable operating performance despite vulnerability to natural events and significant dependence on tourism and military activity. "Maintaining our investment grade rating is of great importance to our bond holders, especially as we embark on the construction of the $97 million third floor corridor that will separate arriving and departing passengers," continued Chuck Ada. "Our focus is to increase passenger enplanements by creating a business environment conducive to our current operators and attractive to new operators or services."

"Since the 2013 General Revenue Bonds were issued, we increased our carrier base from nine airlines to fourteen airlines in FY2016. The Airport's capital improvement program is at full thrust to keep Guam on the forefront of the aviation industry, as a regional aviation hub and the economic engine of our economy," stated Charles H. Ada II, Executive Manager. "The announcement by Moody's affirms that Guam's airport has been managing its position very well, steadily increasing its position, and enhancing its business profile."

Moody's statement can be accessed at www.moodys.com, and a copy is made part of this release.

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