Moody’s might lower Asciano

Moody's Investors Service said it placed the Baa2 issuer rating of Asciano Ltd. and the Baa2 senior unsecured and provisional Baa2 senior unsecured medium-term note program ratings of Asciano Finance Ltd. on review for downgrade following the announcement of a binding bid from a joint consortium of bidders.

Asciano announced that it entered into binding documentation with a joint consortium, including a binding scheme implementation deed (the 'scheme') to acquire all issued shares of Asciano. Also, as part of the proposed transactions, the parties entered into sale agreements in relation to Patrick's container terminal business and the Bulk & Automotive Port Services business.

"The review for downgrade reflects the likelihood that, if successful, the transaction will result in a weakening of the business profile and financial profile of the remaining Asciano business beyond Moody's expectations for the current Baa2 rating," Moody's vice president and senior credit officer Matthew Moore said in a news release.

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