S&P lifts SMRT view to stable

S&P said it revised the outlook on SMRT Corp. Ltd. to stable from negative.

The agency also said it affirmed the company’s AAA long-term corporate credit rating and axAAA long-term Asean regional scale rating.

S&P also said it affirmed the AAA and axAAA long-term issue rating on SMRT Capital Pte. Ltd.'s senior unsecured notes.

SMRT fully guarantees the notes, the agency said.

The outlook revision reflects a view that SMRT's capital structure will benefit from the implementation of a new regulatory framework for its trains business, S&P said.

The agency said it estimates that the company's ratio of funds from operations-to-debt will be more than 35%.

The ties between the company and the government also are expected to remain close in the new framework, S&P added.

On July 15, the Land Transport Authority of Singapore announced the conclusion of its discussions with SMRT on the transition of the company's operated lines to the New Rail Financing Framework, which the government announced in 2008, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.