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The proceeds raised will be mainly used to repay NCIG’s senior debt with Moody’s assigning a “Baa3” rating for the securities.
To improve the rating and consequential interest repayments, Moody’s said NCIG would need to finalise its expansion work, ramp up to full nameplate capacity at its coal exporting terminal, continue its track record of stable operations and improve its financial profile through debt reduction.
“The rating could face downward pressure if the existing headroom in the financing cap deteriorates meaningfully or if the company does not continue to address its refinancing needs in a timely manner,” Moody’s said.
“The rating could also face downward pressure if there was a further decrease in credit quality of the shareholder shippers or a material further weakening in demand for coal produced in NCIG's catchment area.”
The final stage of NCIG’s $A2.5 billion Kooragang Island export terminal was officially opened last month.
Its completion means NCIG’s third terminal is ramping up to its goal throughput capacity of 66 million tonnes per annum.
The NCIG consortium consists of BHP Billiton, Banpu subsidiary Centennial Coal, Yancoal Australia, Peabody Energy and Whitehaven Coal.
