Our 'BBB' issuer credit rating on Asciano Ltd. remains on CreditWatch with negative implications pending completion of the proposed acquisition of Asciano by a consortium of investors. Asciano now expects the outcome of the Foreign Investment Review Board (FIRB) review of the transaction to be delayed to July 2016 because of the federal elections, which will be held on July 2, 2016. Subject to approvals by FIRB and the Australian Competition and Consumer Commission (ACCC), the second court hearing to approve the scheme of arrangement is currently scheduled on July 28, 2016. As part of the proposed transaction, Asciano will sell its ports, bulk, and auto businesses, and will only retain its existing coal haulage, bulk, and intermodal rail segments.
