Moody's: Transurban plan positive

Moody's Investors Service said Transurban Group's announced new capital structure framework could have positive implications on its A3 rating.

Part of the plan, a reduction from distribution per security from about 58 cents to 22 cents from 2009, would translate to a dividend reduction of about A$400 million prior to distribution reinvestment plan, the agency said.

A proposed equity raising also would provide funding for the group's future growth plans, Moody's said. These initiatives would reduce Transurban Finance Company Pty Ltd.'s reliance on additional debt, the agency said.

But the group's credit profile is challenged by its growing exposure to higher-risk and development-focused toll road projects, the agency said.

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