Research Update: Pacific National Holdings Pty Ltd. 'BBB-' Rating Affirmed On Strong Competitive Position; Outlook Stable

Pacific National's liquidity level has improved with the recent refinancing of its A$1.2 billion bank facilities for three to five years and absence of any debt maturity until September 2020. As a result, we are revising our liquidity assessment on the company to strong from adequate. We are affirming our 'BBB-' issuer credit rating and issue rating on Pacific National and the company's senior unsecured debt, respectively. The stable outlook reflects our expectation that the company's strong competitive position in the Australian rail industry and planned transformation initiatives would maintain the company's FFO to debt at 17%-19% over the next two to three years. On Nov. 1, 2018, S&P Global Ratings affirmed its 'BBB-' long-term issuer credit rating on Pacific

...+ Pacific National's liquidity level has improved with the recent refinancing of its A$1.2 billion bank facilities for three to five years and absence of any debt maturity until September 2020. + As a result, we are revising our liquidity assessment on the company to strong from adequate. + We are affirming our '###-' issuer credit rating and issue rating on Pacific National and the company's senior unsecured debt, respectively. + The stable outlook reflects our expectation that the company's strong competitive position in the Australian rail industry and planned transformation initiatives would maintain the company's FFO to debt at 17%-19% over the next two to three years....

Research Update