Moody's affirms Transurban Finance

Moody's Investors Service said it affirmed Transurban Finance Co. Pty Ltd.'s senior secured rating of Baa1. Transurban Finance is the financing vehicle for the Transurban Group.

The outlook remains stable.

The affirmation follows news that Transurban will acquire the assets and motorway concession deed connected with the Lane Cove Tunnel for A$630.5 million and raise A$542.3 million via a fully underwritten renounceable share entitlement offer, Moody's said.

The affirmation considers both the impact of the acquisition of the Lane Cove Tunnel concession and the equity raising on Transurban's credit metrics, the agency said.

The acquisition makes strategic sense for Transurban, given its ownership of other key assets on the Sydney orbital network, Moody's said.

The rating reflects Transurban's ownership of good quality and mature toll roads, which have established traffic, the agency said.

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