Moody’s: Aurizon ratings unchanged

Moody's Investors Service said that Aurizon Holdings Ltd.'s results for the year ended June 30 are broadly in line with the agency’s expectations and will not immediately affect its Baa1 issuer rating or the stable outlook.

The outcome of the UT5 regulatory determination, and the company's countermeasures under downside scenarios, will however be a key rating driver, the agency noted.

"The company reported a 1% rise in underlying EBITDA to A$1.466 billion, supported by A$86 million in savings under transformation program outcomes during the year, as well as record coal volumes in both haulage and below rail," John Manning, Moody's vice president and senior credit officer, said in a news release.

The company has achieved A$393.6 million in cumulative transformation program savings since July 2015. As a result, Aurizon's consolidated financial leverage, as measured by adjusted funds from operations to debt, registered 35% compared to the 30% minimum tolerance level for its Baa1 rating, Moody’s said.

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