Fitch may cut Lane Cove Tunnel Finance

Fitch Ratings said it placed Lane Cove Tunnel Finance Pty Ltd.'s underlying rating of BBB- on Rating Watch negative.

The credit-wrapped notes, totaling A$1.14 billion, issued by Lane Cove Tunnel Finance, are rated AA with negative outlook, carry a financial guarantee from MBIA Insurance Corp. and remain unaffected by this action.

The agency said it has monitored traffic growth on the Lane Cove Tunnel project following completion of stage 2 surface works in March. While traffic growth has been positive, it has not been as strong as anticipated, Fitch said.

Unless there is a major deterioration in Lane Cove Tunnel's standing, the agency said it will again comment on its ratings once the new patronage forecast is received and when further information is available on the progress of a proposed recapitalization plan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.