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 2013 Revenue Bonds, with a stable outlook. "The stable outlook reflects our anticipation that the Airport's financial performance will remain steady, supported by consistent or improving passenger levels", according to the ratings summary released by S&P on November 26, 2014. This investment grade rating is part of S&P's annual surveillance review of the airport credit. 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 90% 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.

In Fiscal Year 2014, the A.B. Won Pat International Airport, Guam served 1.7 million enplaning passengers with the predominant market shares of Japan at 62% and South Korea at 22%. S&P views the airport as having a dominant business position. In regard to finances, S&P stated financial performance measures have been consistently adequate with the Authority's debt service coverage (DSC) for audited Fiscal Year 2013 Financials at DSC level of 2.1 of annual debt service payments, well above the required debt service coverage ratio of 1.25, per the Bond Indenture.

"Our 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 Standard & Poor's affirms that Guam's airport has been steadily increasing its position, increasing its signatory carrier base from six airlines in 2003 to ten carriers in 2014. We will be taking every opportunity to capture new airline service and anticipate we realize a new route in the very near future. "

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