Fitch gives BBB- to Asciano notes

Fitch Ratings said it assigned Asciano Ltd.’s (BBB-/stable) $400 million 4.75% senior unsecured notes due 2028 a BBB- rating.

The notes are issued by Asciano's wholly owned subsidiary, Asciano Finance Ltd., and are guaranteed by Asciano.

Proceeds will be used for refinancing purposes.

The notes are rated at the same level as Asciano's senior unsecured ratings as they represent its direct, unconditional, unsecured and unsubordinated obligations.

Fitch said the long-term issuer default rating is underpinned by strong cash flows visibility under take-or-pay contracts with profitable source mines and stable domestic demand for rail-haulage services.

The stable outlook reflects Asciano's financial flexibility, which stems from a comfortable liquidity position, recurring operating cash flow and the company's commitment to maintaining investment-grade ratings, the agency explained.

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