Fitch rates Sydney Airport bonds BBB

Fitch Ratings said it assigned Sydney Airport Finance Co. Pty. Ltd.'s $500 million of 5.125% of unenhanced senior secured notes due February 2021 an expected rating of BBB and affirmed the company's senior secured bank and capital market facilities totaling approximately $5.5 billion on an unenhanced basis at BBB.

The outlook is positive.

The notes are being offered in the United States under Rule 144A/Regulation S and will be used to refinance existing debt.

The agency said the ratings reflect Sydney Airport's importance as an established international and domestic origin and destination airport with proven traffic volumes over many years, providing a high degree of cash flow certainty and strong debt service coverage.

The ratings are constrained by a high level of leverage and by the absence of a scheduled debt amortization program at this time, in Fitch's view.

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