Fitch rates Downer Finance notes BBB

Fitch Ratings said it assigned Downer Group Finance Pty Ltd.’s (Downer Finance) proposed ¥10 billion fixed-rate medium-term notes due May 30, 2033 an expected rating of BBB(EXP).

The issuance is part of Australia-based Downer EDI Ltd.’s (Downer, BBB/stable) debt refinancing, which includes the outstanding debt and bonding facilities of Spotless Group Ltd. after Downer acquired a controlling stake in 2017.

The planned notes will be issued under Downer Finance's A$1 billion debt issuance program.

The notes will be unconditionally, jointly and severally guaranteed by Downer and its subsidiaries currently representing at least 90% of the group's consolidated total tangible assets and EBIT. As a result of the guarantee structure, Fitch said it regards the credit risk associated with the notes to be the same as that of the senior unsecured obligations of Downer.

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