S&P shifts AusNet outlook to negative

S&P said it revised the outlook on AusNet Services Ltd. to negative from stable and affirmed the A- rating.

The AusNet group agreed to be wholly acquired by the Brookfield consortium.

“The negative outlook on AusNet Services reflects a high probability of ownership change in the next six to 12 months and an associated increase in its financial leverage. It is difficult to predict the degree of weakening in credit quality should any takeover offer succeed. However, we believe the rating could weaken by at least one notch as new owners are more likely to extract value from AusNet's balance sheet given its strong business position,” S&P said in a press release.

The agency noted AusNet has been a takeover target since mid-September 2021.

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