Moody's rates Transurban Finance loans A3

Moody's Investors Service said it assigned an A3 senior secured rating to Transurban Finance Co. Pty. Ltd.'s A$600 million in bank facilities.

The outlook is stable.

The new bank debt ranks pari passu with the company's senior secured debt. Proceeds will repay existing debt.

The ratings reflect Transurban's ownership of five good quality and mature toll roads, as well as the low traffic risk on these toll roads, Moody's said. As a result, the group generates stable cash flows from these toll roads, the agency said.

The company's credit strengths are partially offset by its high adjusted debt level and resultant weak financial metrics, Moody's added. Ongoing funding exposure to investment activities in the United States also challenges the group's credit profile, the agency added.

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