The international rating agency Moody’s slightly increased the rating of Václav Havel Airport Prague on Oct. 30. The former A1 rating with a positive outlook improved one degree to the current Aa3 with a stable outlook, which is considered to be a high-quality investment.
Moody’s agency said it particularly appreciated the stable financial situation of Prague Airport, competitive airport charges, rising operating results, the company’s financial profile, and its position within the Czech Republic.
A credit rating is important for investors as it shows them how likely their investment will be paid back. The higher the rating, the better the debtor is perceived in the eyes of creditors, improving the debtor’s ability to secure cheaper loans.
The newly granted Aa3 rating from Moody’s indicates the airport is a safe investment with low credit risk.
“This is an important condition for fulfilling the obligation to develop airport capacities and services without the need for funds from the state budget, said Václav Řehoř, Chairman of the Board of Directors of Prague Airport. “It is still our intention to finance development projects from our revenues. Wheen seeking investment, a very high-reliability rating will provide us with favorable loan conditions.”
Václav Havel Airport in Prague is the largest airport in the Czech Republic. In the first half of this year, it handled more than 7.84 million passengers, an increase of five percent year-on-year. The airport is already on the edge of its capacity and wants to expand with an investment of CZK 27 billion (more than €1 billion) in the future.