News Column

Moody's assigns (P)Aa3 rating to New Kansai International Airport's domestic shelf registration programme

August 17, 2014



Moody's Japan K.K. has assigned a (P)Aa3 rating

to the domestic shelf registration programme of New Kansai International

Airport Co., Ltd (NKIAC). The rating outlook is stable.

The specific shelf registration rated is:

 JPY 210 billion effective August 15, 2014

RATINGS RATIONALE

The rating Aa3 reflects the company's strong links with the government of

Japan (Aa3, stable).

NKIAC started operating on July 1, 2012 through the merger of the

existing KIAC and Itami Airport. Both airports -- which the NKIAC owns

and operates -- play a very important role in Japan's transportation

policy. Kansai International Airport is one of three international

airports in Japan, and the only airport in the country operating 24 hours

a day.

The rating reflects our view that the creditworthiness of the NKIAC should

be the same as that of the Japanese government, given the company's

national aviation policy mandate, the central government's strong credit

and financial support, and the high level of government oversight of its

operations.

The law establishing the NKIAC stipulates that strong credit support be

provided by the central government, including explicit guarantees for

its bonds and no-interest loans. In addition, annual debt service

subsidies are provided.

NKIAC's operations are also strongly controlled by the government. The

company's budget, annual funding activities and business plans must all

be approved by the Ministry of Land Infrastructure and Transport and, any

modification to these plans also requires approval.

The principal methodology used in this rating was Government-Related

Issuers: Methodology Update published on July 2010. Please see the

Credit Policy page on www.moodys.com for a copy of this methodology.

New Kansai International Airport Co., Ltd. is headquartered in Osaka.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this

announcement provides certain regulatory disclosures in relation to each

rating of a subsequently issued bond or note of the same series or

category/class of debt or pursuant to a program for which the ratings are

derived exclusively from existing ratings in accordance with Moody's

rating practices. For ratings issued on a support provider, this

announcement provides certain regulatory disclosures in relation to the

rating action on the support provider and in relation to each particular

rating action for securities that derive their credit ratings from the

support provider's credit rating. For provisional ratings, this

announcement provides certain regulatory disclosures in relation to the

provisional rating assigned, and in relation to a definitive rating that

may be assigned subsequent to the final issuance of the debt, in each

case where the transaction structure and terms have not changed prior to

the assignment of the definitive rating in a manner that would have

affected the rating. For further information please see the ratings tab

on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit

support from the primary entity(ies) of this rating action, and whose

ratings may change as a result of this rating action, the associated

regulatory disclosures will be those of the guarantor entity. Exceptions

to this approach exist for the following disclosures, if applicable to

jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure

from rated entity.

Moody's Japan K.K. is a credit rating agency registered

with the Japan Financial Services Agency and its registration number is

FSA Commissioner (Ratings) No. 2. The Financial Services

Agency has not imposed any supervisory measures on Moody's Japan K.K.

in the past year.


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Source: EMBIN (Emerging Markets Business Information News)


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