Ottawa International Airport Authority secures favourable credit assessments
Ottawa, May 1, 2002 – The Ottawa International Airport Authority reacted with pleasure today to the release by two ratings agencies of highly favourable credit ratings for its upcoming bonds issue.
Standard & Poor’s Ratings Service Inc. and Moody’s Investors Service, Inc. ranked the upcoming bonds issue A+ and A1 respectively, with stable outlook based on the sound financial management of the Airport Authority and its outstanding corporate track record. Moody’s A1 rating is the highest ever awarded a Canadian Airport Authority.
“These outstanding ratings reflect Ottawa Airport’s commitment to the bottom-line,” stated Mr Paul Benoit, President and Chief Executive Officer of the Ottawa Airport Authority. “Following an extensive review of our first five years of management and operations of Ottawa Airport, the ratings agencies have given our corporation a ringing endorsement. We are evermore confident that the markets will welcome our upcoming bonds issue,” Mr Benoit added.
The $270 million financing program will be privately placed with Canadian investors within the coming weeks. Ottawa Airport Authority’s bond issue is being led by RBC Capital Markets and CIBC World Markets, with RBC as lead underwriter. The net proceeds of this issue will serve to finance Phase 1 of the airport expansion program currently underway.
The Ottawa Airport Authority Inc. operates Ottawa International Airport under a 60-year lease transfer agreement with Transport Canada with a mandate to manage, operate and develop Airport facilities and lands in support of the economic growth of the National Capital Region. The Authority was incorporated without share capital in 1995 and operates with annual revenues in excess of $50 million generated exclusively through landing fees, airport improvement fees collected by airlines in the price of a ticket, facility and land leases and commercial operations. The current terminal (32,000 square metres) and its access roads were last expanded in 1987 to handle 2.6 million passengers per year. Passenger traffic exceeded 3.3 million in 2001.
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Director, Communications and Public Affairs