Moody's rates Alinta loans B1

Moody's Investors Service said it assigned a provisional B1 corporate family rating to Alinta Holdings.

At the same time, Moody's assigned provisional B1 senior secured ratings to Alinta Energy Finance Pty Ltd.'s proposed first-lien senior secured dollar-denominated term loan B, delayed draw and revolving debt facility.

The facilities are expected to be around the U.S. dollar equivalent of A$1,196,000,000, A$75 million and A$240 million, respectively.

Alinta Energy Finance is Alinta's wholly owned financing vehicle and the ultimate Australian holding company of the group.

The outlook is stable.

"Alinta's provisional (P) B1 rating reflects the inherently risky nature of its East Coast vertically integrated energy business, the operating challenges experienced in recent years, as well as the company's high financial leverage and evolving capital management policy. At the same time, the rating considers Alinta's solid market position in the residential gas retail segment in Western Australia (WA), as well as improvements in its operating performance over the past year, and which support its rating at the mid-to-high single-B level," Moody's assistant vice president Spencer Ng said in a news release.

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