Moody's rates Port of Newcastle secured notes Baa3

Moody's Investors Service said it assigned a Baa3 senior secured rating to the Port of Newcastle Investments (Financing) Pty Ltd.'s (PoN Financing) proposed $500 million Rule 144A 10-year fixed-rate senior secured notes.

The outlook is stable.

The rated notes consist of a single tranche and rank pari passu with PoN Financing's existing senior secured facilities. Moody's said the proceeds of the issuance are to partially refinance PoN Financing's existing bank debt.

PoN Financing is the financing vehicle for the Port of Newcastle Investments group. The group's principal asset is the Port of Newcastle, the largest port on the east coast of Australia and the third largest port in Australia by throughput.

“The rating is underpinned by Port of Newcastle's essential role in the Hunter Valley (HV) coal export supply chain and that volumes shipped through the HV supply chain should generate sufficient earnings for the port to maintain its target credit metrics,” said Nicholas Chapman, a Moody's vice president and senior analyst, in a news release.

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