Summary: NSW Ports Finance Co. Pty. Ltd

Entrenched position as the only general 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 potentially support a higher rating Uncertainty regarding the company's financial policies that could constrain a higher rating 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 supported by

...Outlook: Positive 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 '###+' level. The outlook is further supported by our expectation that the company's two ports will continue to enjoy volume growth while investments would remain limited, thereby supporting rapid improvement in its financial performance. Further, the outlook reflects the company's financial policy to maintain a ratio of FFO to debt above 9%, although we remain unsure if the company would strictly adhere to it....

Summary