Moody’s Affirms Baa2 Rating on GIAA’s Revenue Bonds


Guam – The investor ratings company Moody’s has affirmed a Baa2 rating on the Guam Airport’s Series 2003 Revenue Bonds.

Moody’s also rates the outlook on GIAA’s $145 million debt “Stable.”

READ the rating report on HERE or read it below

A definition found on states that a Baa2 rating is the 9th highest rating in Moody’s Long-term Corporate Obligation Rating scale. Debt obligations rated Baa2 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. A rating one notch higher is Baa1, one notch lower is Baa3

According to the Moody’s report, the Baa2 rating is based on:

* the airport’s monopoly position, which is balanced by a local economy that is highly concentrated in tourism and U S military activity

* the increasing number of airlines that are signatory to the residual airline lease agreement

* the island’s geographic location that makes it susceptible to typhoons, which could result in damage to the facility or depress traveler demand.

Moody’s cites as a strength GIAA’s  potential for greater growth with “the possible increased U.S. military presence in Guam and more tourism opportunities from mainland China and Russia”

Among the challenges, according to the report, are “volatile demand drivers” like “Japanese discretionary spending, exchange rates and extreme weather events.”

Rating Action:

Moody’s Affirms Baa2 Rating on A.B. Won Pat Guam International Airport Authority’s Revenue Bonds; Outlook is Stable