DBRS Rates Aéroports de Montréal’s Revenue Bonds at A (high), Stable

DBRS has today assigned a rating of A (high) with a Stable trend to the $250 million Series K Revenue Bonds (the Bonds) issued by Aéroports de Montréal (ADM or the Company). DBRS notes that the ratings it has assigned to ADM’s outstanding pre-existing debt remain unchanged.

The Bonds will be direct obligations of ADM ranking pari passu with all other indebtedness secured pursuant to its Master Trust Indenture. Bond proceeds will be used to fund ADM’s capital program and for general corporate purposes. The Bonds will be non-amortizing, pay interest semi-annually, and will mature on September 26. 2042.

After exhibiting 3.4% growth in Q1 2012, passenger traffic has since moderated. While domestic traffic remains relatively strong, particularly on the Montréal-Toronto route, the transborder and international segments have softened, resulting in flat growth during the second quarter on a year-over-year basis, and ADM anticipates that traffic will continue to lag original estimates. However, the Company has identified areas of cost savings which should help to offset potential revenue impacts, and estimates that its EBITDA for the full year will be roughly in line with budget.

No material development has been noted by DBRS since the completion of its annual review and the publication of its rating report on ADM on March 28, 2012. The report is available at www.dbrs.com or by contacting us at info@dbrs.com.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Canadian Airport Authorities, which can be found on our website under Methodologies.