Bulletin: Pacific National Can Absorb Acacia Ridge Acquisition

MELBOURNE (S&P Global Ratings) Dec. 8, 2020--S&P Global Ratings today said that Pacific National Holdings Pty Ltd. (PN; BBB-/Stable/--) has sufficient ratings headroom to absorb the acquisition of the Acacia Ridge intermodal terminal. The acquisition is still subject to Foreign Investment Review Board (FIRB) approval. If the acquisition is approved, it is likely to be debt funded (A$170 million) and contribute a low double-digit EBITDA for a full year. On that basis, PN's funds from operations (FFO)-to-debt metrics will trend toward the lower end of our previously forecast level of 17%-19% over the next few years. This compares favorably with our downside trigger of FFO to debt of 15%. Further, we expect PN to proactively manage its shareholder distributions given

...December 7, 2020 MELBOURNE (S&P Global Ratings) Dec. 8, 2020--S&P Global Ratings today said that Pacific National Holdings Pty Ltd. (PN; ###-/Stable/--) has sufficient ratings headroom to absorb the acquisition of the Acacia Ridge intermodal terminal. The acquisition is still subject to Foreign Investment Review Board (FIRB) approval. If the acquisition is approved, it is likely to be debt funded (A$170 million) and contribute a low double-digit EBITDA for a full year. On that basis, PN's funds from operations (FFO)-to-debt metrics will trend toward the lower end of our previously forecast level of 17%-19% over the next few years. This compares favorably with our downside trigger of FFO to debt of 15%. Further, we expect PN to proactively manage its shareholder distributions given the company's commitment to an investment-grade rating. In our opinion, Acacia Ridge will bolster PN's strong position within the Australian freight haulage market, complementing its existing intermodal terminals...

Bulletin