Strong market positions in rail-haulage and port stevedoring services in Australia Moderate-to-high barriers to entry Long-term take-or-pay contracts in coal haulage Exposure to volume cycles in some key segments and increasing competition in port stevedoring Acquisition and port divestment, which would weaken the overall business Stable medium-term financial metrics underpinned by positive free operating cash flow Moderating capital-expenditure program such that this will be comfortably internally funded over the medium term Moderate near-term debt maturities, leading to relatively stable funding costs The CreditWatch reflects our expectation that we would lower the ratings on Asciano Ltd. if the proposed acquisition and divestment proceed as planned. Based on existing information, we would expect to lower the ratings by one notch. This potential
