Moody's gives Alinta loans B1

Moody's Investors Service said it assigned a definitive B1 corporate family rating to Alinta Holdings.

At the same time, the agency assigned a definitive B1 senior secured rating to the $1.07 million senior secured term loan B facility due Aug. 13 2019, $70 million delayed draw term facility due Aug. 13, 2018 and A$240 million revolving credit facility due Aug. 13, 2018 entered into by Alinta Holdings and Alinta Energy Finance, a fully owned and guaranteed subsidiary.

The proceeds of the issuance will be used principally to repay existing debt, provide working capital as well as funding for future capital expenditures.

"Alinta's B1 rating reflects the inherently risky nature of its East Coast vertically integrated energy business, the operating challenges experienced in recent years, as well as the company's high financial leverage and evolving capital management policy. At the same time, the rating considers Alinta's solid market position in the residential gas retail segment in Western Australia (WA), as well as improvements in its operating performance over the past year, and which support its rating at the mid-to-high single-B level," Moody's assistant vice president Spencer Ng said in a news release.

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