JPY 40 billion of New Debt Securities Rated
Tokyo, February 16, 2011 -- Moody's Japan K.K. has assigned its Aa2 ratings to the bonds
issued by Kansai International Airport Co., Ltd (KIAC).
The rating outlook is stable.
This is a takedown from the company's JPY300 billion domestic shelf
registration (effective July 18, 2010), which is rated (P)Aa2.
The specific bond issues rated are:
JPY 20 billion Series 27 bonds, due 2013
JPY 10 billion Series 28 bonds, due 2015
JPY 10 billion Series 29 bonds, due 2020
RATING RATIONALE
The Aa2 rating reflects KIAC's intrinsic strength -- including
Moody's expectation the favorable legal and regulatory framework will
continue, contributing to its low operating and refinancing risks
-- and the credit support which Moody's believes the government
would provide in a stressful situation.
KIAC was established under the Kansai International Airport Law (KIX LAW),
which prescribes that the Japanese national government retains over half
of the airport's shares. In addition to capital injection,
the KIX LAW also prescribes that the Japanese national government may
provide a variety of credit supports, including guarantees and no-interest
loans. As a result, a majority of the company's financing
has been provided based on the Japanese national government's explicit
credit support.
An upgrade of the sovereign rating would lead to upward rating pressure.
Moody's sovereign team says an upgrade would be contingent upon improvements
in the government debt trajectory and in economic growth.
A downgrade in the sovereign rating would trigger a downgrade.
Moody's sovereign team sees any downgrade contingent on a severe and protracted
deterioration in government finances; and erosions in government
debt affordability and the special characteristics of Japan's government
debt market.
The last rating action with respect to KIAC was on July 22, 2009,
when Moody's re-aligned 13 Japanese government-related issuers'
ratings to the same level as the Japanese Government Bonds (rated at Aa2
for its local currency obligations).
The principal methodology used in this rating was "Government-Related
Issuers: Methodology Update" published on September 30,
2010, and available on www.moodys.co.jp.
Kansai International Airport Co., Ltd., headquartered
in Osaka, owns and operates Kansai International Airport.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, parties not involved in the ratings,
public information, confidential and proprietary Moody's information.
Measures taken to ensure the quality of this information include use of
public information, reviews by a third party and verification by
the lead analyst.
Moody's considers the quality of information available on the issuer
or obligations satisfactory for the purposes of assigning a credit rating.
Moody's adopts all necessary measures to ensure that the information it
uses in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third parties. However, Moody's is not an auditor
and cannot in every instance independently verify or validate information
received in the rating process.
Credit ratings are Moody's current opinions of the relative future credit
risk of entities, credit commitments, or debt or debt-like
securities. Moody's defines credit risk as the risk that an entity
may not meet its contractual, financial obligations as they come
due and any estimated financial loss in the event of default. Credit
ratings do not address any other risk, including but not limited
to: liquidity risk, market value risk, or price volatility.
Credit ratings do not constitute investment or financial advice,
and credit ratings are not recommendations to purchase, sell,
or hold particular securities. No warranty, express or implied,
as to the accuracy, timeliness, completeness, merchantability
or fitness for any particular purpose of any such rating or other opinion
or information is given or made by Moody's in any form or manner whatsoever.
The credit risk of an issuer or its obligations is assessed based on information
received from the issuer or from public sources. Moody's may change
the rating when it deems necessary. Moody's may also withdraw the
rating due to insufficient information, or for other reasons.
Moody's Japan K.K. is a credit rating agency registered
with the Japan Financial Services Agency and its registration number is
FSA Commissioner (Ratings) No. 2. The Financial Services
Agency has not imposed any supervisory measures on Moody's Japan K.K.
in the past year.
Please see ratings tab on the issuer/entity page on the Moody's
website for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Credit Ratings were fully digitized and accurate
data may not be available. Consequently, Moody's provides
a date that it believes is the most reliable and accurate based on the
information that is available to it. Please see the ratings disclosure
page on the Moody's website for further information.
Please see the Credit Policy page on the Moody's website for the
methodologies used in determining ratings, further information on
the meaning of each rating category and the definition of default and
recovery.
Tokyo
Kenji Okamoto
Vice President - Senior Analyst
Corporate Finance Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Tokyo
Minoru Kubota
MD - Financial Institutions
Rating Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Moody's Japan K.K.
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Moody's assigns Aa2 rating to Kansai International Airport's bonds