...Lonsdale Finance Pty Ltd is the issuing entity for the Port of Melbourne (PoM) and the Long-Term Issuer Default Rating of 'BBB' with a Stable Outlook is based on the credit assessment of the PoM group. The rating reflects PoM's role as a primary port of call serving the Victorian and broader Australian market. The port has a diversified landlord port business model that benefits from a stable regulatory regime and a portfolio of long-term property leases that govern the operation of its established port facilities. The company issues senior debt, but a lack of strong covenants, a non-amortising profile, high gearing and refinancing risk constrain its rating. Fitch Ratings forecasts a five-year average net debt/EBITDA of 8.0x under our rating case, which demonstrates reasonable financial flexibility at the current rating level....
