S&P affirms Transurban

Standard & Poor's said it affirmed its BBB+ long-term corporate credit and A- senior-secured debt ratings on Transurban Finance Co. Pty Ltd.

At the same time, S&P said it affirmed its BBB rating on Transurban's Convertible Adjusting Rate Securities (CARS).

The affirmations follow Transurban Group's announcement that it had launched an agreed A$1.26 billion takeover bid for Sydney Road Group, which has stakes in three Sydney toll roads.

The outlook remains negative.

The ratings actions reflect S&P's understanding of the proposed equity and subordinated debt financing structure for the acquisition, based on our expectation that Transurban achieves 100% ownership of the Sydney Road Group.

Importantly, S&P said it also reflects Transurban's commitment to an underwritten dividend re-investment plan, which is expected to provide in excess of A$500 million cash.

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