S&P upgrades Asciano

Standard & Poor’s said it raised the long-term issuer credit rating on Asciano Ltd. to BBB from BBB-.

The agency also said it raised the rating on the company’s senior unsecured debt ratings to BBB and revised the outlook to stable from positive.

The action reflects a view that Asciano’s capital expenditure will moderate in the next 12 to 18 months, with the last remaining large investment project – the Port Botany expansion project – expected to be completed in the first quarter of 2015.

This transition to a relatively lower capital expenditure outlook starting in fiscal 2016 comes after several years of heavy investment, S&P said.

But, the company is expected to maintain its strong business risk profile over the medium term because of its strong competitive position in its rail and port businesses, the agency said.

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