Pacific National Holding Pty Ltd.'s earnings are likely to improve in line with expectations over next two to three years. We forecast the Australian rail haulage operator's cash flow adequacy to improve over the next two to three years, supported by cost-savings, non-strategic asset sales, and disciplined shareholder distributions. We therefore revised the rating outlook on Pacific National to stable from negative. We affirmed our 'BBB-' long-term issuer credit rating on the company and the issue ratings on its outstanding debt. The stable outlook on the issuer credit rating reflects our view that Pacific National's reduced leverage will provide a buffer above our downgrade threshold over the next one to two years. The management and shareholders have delivered significant operational
