Moody’s backs Sydney Airport call on Badgerys Creek

Ratings agency Moody’s has given the tick of approval to Sydney Airport’s decision not to build Badgerys Creek.

Ratings agency Moody’s has given the tick of approval to Sydney Airport’s decision that it will not take up the option to build Badgerys Creek.

Moody’s Investors Service senior vice-president Arnon Musiker said the decision meant there was greater clarity around Sydney Airport’s capital structure over the long term.

“The potential for Sydney Airport to participate in the construction of the Western Sydney Airport was a threat to its long-term credit profile,” Mr Musiker said.

He made the comments after revising to positive from stable the outlook on the senior secured ratings for Sydney Airport’s financing vehicle.

He added that the credit metrics could get a further fillip in the next 12-18 months if assumptions of higher passenger numbers proved correct.

Equity analysts at Morgan Stanley this week told clients that they expected “marginal’ losses to passenger numbers when Badgerys Creek started operating in the late 2020s.