A.B. Won Pat International Airport Authority, Guam

Standard & Poors (S&P) affirmed its “BBB” rating for the A.B. Won Pat International Airport, Guam’s 2003 Revenue Bonds, with a stable outlook. “The rating reflects our view of the airport’s continued adequate financial performance against a fluctuating demand profile, low levels of fully unrestricted liquidity and cash flow debt service coverage (DSC), and a strong business position serving Guam”, according to the ratings summary released by S&P on March 2, 2012.

The S&P Summary attributed the Airport’s key credit strengths to include:

• Its essential role in providing air service to the island with a strong origin and destination nature, with 94% of total passengers traveling to or from the island, and
• Its history of relatively stable financial performance despite volatility in passenger volumes produced by economic swings, weather events, and other factors that influence visitors to Guam.
• Debt service coverage levels no lower than 1.3x (of the required 1.25) since fiscal year 2006, despite a 14% passenger decline in that period.

The Authority’s debt service coverage was 1.5 for Fiscal Year 2011.

“Currently we are finalizing the update to the Airport Master Plan to identify the Airport’s current and future project needs 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 Standard & Poor’s ensures the Airport is positioned to take advantage of any opportunities that may reduce interest rates for future financing or realize potential savings opportunities through a refinancing/restructuring of the 2003 Bond issuance.”

The official release of the Airport Revenue Bonds can be accessed at www.standardandpoors.com.