S&P affirms Asciano

Standard & Poor's said it affirmed its long-term corporate credit and senior debt ratings on Asciano Ltd. at BBB-.

At the same time, the agency said it revised the outlook on the long-term BBB- rating to stable from positive.

The rating action reflects S&P's view that Asciano's ongoing heavy capital expenditure plans, while serving to maintain its strong business risk profile, will prevent the company from achieving positive free operating cash flow until after fiscal 2014.

S&P said this factor is likely to limit any material improvement in credit measures in the next few years that would support a higher rating. Nevertheless, the agency said it expects Asciano to remain comfortably positioned at the BBB- rating.

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