Moody's eyes AusNet for downgrade

Moody's Investors Service said it placed AusNet Services' A3 issuer rating, AusNet Transmission Group Pty Ltd.'s A3 issuer rating, AusNet Services Holdings Pty Ltd.’s A3 backed senior unsecured ratings, (P)A3 backed senior unsecured medium-term note program ratings and Baa2 backed subordinated notes ratings under review for downgrade. The outlook has changed the outlook to under review from stable.

The review follows AusNet's announcement it agreed to the terms of a binding proposal and entered a scheme implementation deed with a consortium led by Brookfield Asset Management Inc. Under the SID, the consortium would acquire all of AusNet’s issued shares.

"The review for downgrade reflects the credit negative impact of the change in AusNet's ownership should the transaction proceed, as well as the uncertainty around AusNet's future capital structure post-acquisition," said Simon Poidevin, a Moody's assistant vice president and analyst, in a press release.

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