Moody’s: Asciano notes Baa2

Moody’s Investors Service said it assigned a Baa2 rating to Asciano Finance Ltd.’s inaugural 10-year A$350 million medium-term note issuance.

The notes are issued under Asciano Finance’s existing note program and are guaranteed by Asciano Ltd. and certain subsidiaries, Moody’s said.

The notes issued under the program rank pari passu with all the other senior unsecured debt of Asciano Finance.

The proceeds will be used for general corporate purposes.

The outlook is stable.

Asciano’s strong market position in the Australian logistics chain, particularly for bulk rail haulage, national intermodal and container stevedoring, provides fundamental rating support the agency said.

In particular, the derivation of about half of the company’s EBITDA from coal haulage with contractual agreements increases the visibility of the company’s future earnings, Moody’s said.

Although Asciano has material debt maturities over the next two years, the agency said it regards overall refinance risk as manageable.

The ratings further recognize the countermeasures available to Asciano to protect its financial profile, which mainly comprise capital expenditure reduction from paring back discrete growth projects and the ability to reduce dividends, Moody’s said.

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