S&P AFFIRMS "AA" BOND RATING FOR LOS ANGELES INTERNATIONAL AIRPORT

(Los Angeles, California - November 8, 2004) Standard & Poor's (S&P) Ratings Services has affirmed the Los Angeles International Airport (LAX) bond rating of "AA" with a stable outlook -- the highest rating S&P has assigned to a U.S. airport revenue debt. LAX is also among the highest rated of all transportation-related enterprises, S&P said.

The ratings covers LAX's $215.6-million senior lien revenue bonds and "is based on the very strong financial position and demand profile of the airport," according to S&P.

"We are pleased that Standard & Poor's has again recognized the strength of the LAX market and the financial stability of Los Angeles World Airports," said Kim Day, LAWA executive director. "The 'AA' rating assigned to LAX since 2002 is important for LAWA to maintain as we move forward with implementation of the airport's modernization program in 2005."

In affirming the credit profile for the world's largest origination and destination airport, S&P said the rating reflects the airport's strengths in seven areas:

1. Dominance in a wealthy, large air trade area, handling 74 percent of total enplaned passengers and virtually all international passengers for the Los Angeles consolidated metropolitan statistical area's position of 17 million;
2. Good air carrier diversity, with service offered by 85 airlines and no airline representing more than 17 percent of market share;
3. Exceptionally low debt, with debt per enplanement of $7.83 in fiscal 2003;
4. Excellent debt service coverage, at approximately 2.9x in fiscal 2003 and throughout the forecast period until fiscal 2007;
5. Reasonable airline cost per enplanement, which measured $5.90 in fiscal 2003 and is projected to remain at or below this level through the forecast period of fiscal 2007;
6. Strong cash reserves, which represent 426 days' cash on hand in fiscal 2004 and approximately two times the amount of outstanding debt; and
7. A diverse revenue stream, with approximately 60 percent of total revenues from non-airline sources.

LAX is one of four Southern California airports owned and operated by Los Angeles World Airports, a City of Los Angeles department. The other airports are Ontario International, Palmdale Regional and Van Nuys.