Moody’s affirms Genesee & Wyoming

Moody's Investors Service said it affirmed the ratings of Genesee & Wyoming Inc., including the Ba2 corporate family rating and the Ba2 ratings of the company's credit facility.

The affirmation follows the announcement that Genesee & Wyoming plans to acquire the internal rail haulage operator of Glencore plc in the Hunter Valley coal region in Australia (GRail) for A$1.14 billion ($866 million).

The outlook remains stable.

Moody’s said the affirmation considers the limited incremental effect on financial leverage from the planned acquisition, the unique familiarity that Genesee & Wyoming has with the Glencore operations as well as the mitigation of risk from long-term coal exposure through a new take-or-pay rail haulage contract with Glencore.

© 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.