Moody's confirms Transurban Finance

Moody's Investors Service said it confirmed Transurban Finance Co.'s A3 senior secured debt rating (the company's credit-wrapped notes are not affected by this rating action).

The outlook is negative.

The confirmation of the A3 rating reflects Moody's view that the financial impact of Transurban's new subordinated debt issuance on its capital structure will be manageable within its current A3 rating, the agency said.

At the same time, the resultant adjusted financial metrics will be at the weaker end of Moody's tolerance for the rating.

The agency said the A3 rating on the company's senior secured debt remains appropriate, given the low traffic risk on the Transurban Group's two mature toll roads and their low level of operating risk. However, these credit strengths are offset by the high adjusted debt evident in the group and the growing exposure to event risk.

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