Moody's may cut Babcock & Brown

Moody's Investors Service said it placed Babcock & Brown Infrastructure Group's Baa3 senior secured rating on review for possible downgrade.

The action reflects Moody's concern that the company's credit profile may no longer be consistent with an investment grade rating, given the continuing challenges evident in its liquidity position.

The review will consider its diminished financial flexibility - due to expectations of its constrained access to capital - coupled with its need to make ongoing distribution payments, the agency said. The review also will focus on the company's liquidity management strategy, Moody's said.

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