Fitch rates Transurban note A-

Fitch Ratings said it assigned an expected A- rating to Transurban Finance Co. Pty. Ltd.'s proposed $150 million private-placement debt issue. The outlook is negative.

The proceeds will be used primarily to refinance short-term bank lines and for general corporate purposes. While a portion of the new issue represents an element of incremental debt, Fitch said adjusted coverage is not material.

In a separate development, Transurban announced its intention to undertake a corporate restructure to support the group's international business. The restructure is intended to provide an efficient means of holding future offshore investments and provide flexibility to raise foreign capital. While the full details of the proposed structure will not be available until later this month, Fitch said it does not expect the restructure to have any immediate impact on the company's ratings. The agency also noted that having the ability to raise foreign capital for new offshore projects may help reduce the pressure on Transurban Finance's existing ratings, although this will depend on how the restructure is implemented, the asset quality and growth of new offshore investments and extent of new equity capital raised for new investments.

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