Moody's downgrades AusNet

Moody's Investors Service said it downgraded AusNet Services' issuer rating to Baa1 from A3. The agency also lowered AusNet Transmission Group Pty. Ltd.'s issuer rating to Baa1 from A3, AusNet Services Holdings Pty. Ltd.’s backed senior unsecured ratings to Baa1 from A3, backed senior unsecured medium-term note program ratings to (P)Baa1 from (P)A3 and backed subordinate ratings to Baa3 from Baa2.

The outlook on the ratings has changed to stable from under review. The downgrade of AusNet's ratings finishes the review started on Nov. 2 and reflects the new ownership following the acquisition of AusNet by a group led by Brookfield Asset Management Inc. and the forecast that AusNet's credit metrics will weaken on a sustained basis to a level commensurate with Baa1 rating parameters, the agency said.

Moody’s noted the deal boosted AusNet's financial leverage via an addition of A$2 billion of debt to the group's balance sheet.

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