KUALA LUMPUR, July 31 — Moody’s Investors Service says Malaysia Airports Holdings Bhd’s (MAHB) first half (1H) 2015 results are in line with expectations, and will have no impact on its A3 issuer rating.

“The rating outlook remains positive, reflecting the outlook for the Malaysian sovereign (A3 positive) as well as MAHB’s important policy role and contributions to the country’s tourism, export and aviation industries,” it said in a statement here today.

Moody’s Vice President and Senior Analyst Ray Tay said: “Despite flat passenger volumes for MAHB’s operations in Malaysia, the performance for 1H 2015 was in line with Moody’s expectations, and we expect passenger growth within the next 12 to 18 months, as well as improvements in its Turkish operations, to support its A3 rating.”

MAHB’s total reported revenue and reported earnings before interest, taxes, depreciation and amortisation (EBITDA) reached RM1.8 billion and RM824 million in 1H 2015, up 40.3 per cent and 96.4 per cent year-on-year respectively, due mainly to the consolidation of operations of its Sabiha Gokcen International Airport in Istanbul, which MAHB fully acquired at the end of the financial year ended December 2014.

MAHB’s reported EBITDA margin improved to 45.4 per cent in 1H 2015 from 32.4 per cent in 1H 2014, as a result of the significant rises in revenue and despite the increases in costs.

“Furthermore, we expect MAHB to maintain a moderate financial profile despite its acquisition of financially weaker Sabiha Gokcen International Airport,” it added.

In 1H 2015, MAHB—including Sabiha Gokcen International Airport— handled 54 million passengers, representing a growth of around 3.5 per cent year-on-year.

MAHB’s Malaysian operations—both domestic and international—handled 41.3 million passengers, which in terms of growth was flat year-on-year, due to tragedies in 2014 involving Malaysia Airlines flights MH370 and MH17, and which resulted in a huge loss of life.

The Turkish operations recorded a 16.6 per cent growth year-on-year to reach 12.6 million passengers. — Bernama