S&P assigns Transurban Finance BBB+

Standard & Poor's said it assigned a negative outlook to the BBB+ long-term corporate credit rating and A- senior secured debt ratings on Transurban Finance Co. Ltd. following the Transurban group's investment in the Pocahontas Parkway toll road.

The agency added that the ratings have been removed from CreditWatch with negative implications, where they were placed on May 3, following the group's announcement of the acquisition.

S&P said it also assigned a negative outlook to its BBB rating on Transubran's Convertible Adjusting Rate Securities (CARS).

All ratings are affirmed, the agency said, noting that the negative outlooks reflect its concern that Transurban's U.S. investments could put pressure on the ratings.

The agency noted that the corporate credit rating takes in account its expectations that CARS will convert to equity by April 2007, well ahead of the forecast increase in subordinated debt, to finance the prepayment of concession notes.

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