Rating outlook stable for Amex, Holcim and Sydney Airport

S&P revised the outlook on the 'BBB+/A-2' long- and short-term credit ratings assigned to American Express to stable from negative. The outlook revision reflects S&P's view that the rapid deterioration in Amex's asset quality has reached a plateau, as can be seen in its improving results from recent quarters. While there could be quarterly setbacks, it is expected that Amex's loss and provision levels should stabilise and improve over the next several quarters.

American Express Credit Corp. has A$450 million of April 2010 and A$450 million of December 2011 bonds on issue in the domestic market.

Fitch revised its outlook on the 'BBB/F2' long- and short-term issuer default ratings assigned to Holcim Limited to stable from negative. The outlook change reflects Fitch's view that Holcim's credit metrics will show a gradual improvement in the coming 24 months, placing them more comfortably within the range of a 'BBB' rating.

Holcim Australia Finance has a A$500 million August 2012 bond outstanding.
Southern Cross Airports Corporation and Sydney Airport Finance Company had the outlook on the underlying 'Baa2' credit rating, assigned by Moody's, revised to stable from negative. The change to a stable outlook reflects the improvement in Moody's outlook for economic conditions, particularly in Australia.

An improved operating environment, combined with the equity injection early last year, will result in a financial profile that is more consistent with a 'Baa2' rating.

Moody's expects modest single-digit traffic growth over the next few years, and this, in combination with the de-leveraging that has already occurred, will see Sydney Airport's financial metrics improve, supporting the stable outlook on the Baa2 rating,

However, Moody's notes that Sydney Airport, despite its re-capitalisation, remains highly leveraged for its Baa2 rating. Moody's expects the company to continue to maintain its strategy of paying high distributions, and as such the company is reliant on positive traffic growth to maintain its financial profile.

The combined entity has more than A$2.7 billion of credit wrapped bonds outstanding in the domestic market with maturities ranging from November 2011 to November 2030, the latter being a CPI-linked A$300 million bond issued in December 2006.