Entrenched position as the only container and car terminal port serving Sydney, the largest city in Australia Limited operating risk, given its landlord model Limited exposure to volatile commodity sectors such as coal Exposure to the resilient economy of New South Wales Financial metrics improvement that could support a higher rating Expectation of greater clarity on capital structure in the next 12 months Limited capital investment expected in the near term The positive outlook reflects our expectation that NSW Ports Finance Co. Pty Ltd.'s funds from operations (FFO)-to-debt ratio could stabilize at about 10% in the near term, absent any significant debt-funded shareholder return. Those levels would be commensurate with a rating at the 'BBB+' level. The outlook is further
