Ongoing weak traffic take-up of the Lane Cove toll tunnel in Sydney, Australia, has led Moody’s to further downgrade its view on the scheme’s finances.
Traffic volumes were down in May though had edged up slightly in the previous two months, helped by seasonal travel factors. The 3.6km long tunnel was opened in March 2007, a month early (T&TI, June, p13).
Moody’s said volumes will not increase enough for Lane Cove Tunnel Finance Co to service debt at current levels. It added that the firm’s parent, Connector Motorways Group (Connector), is developing a plan to re-capitalise the business, and has sufficient liquidity to meet cash calls until mid-2009, and further if volumes rise.
The credit ratings agency downgraded the senior secured rating of Lane Cove Tunnel Finance Co from Ba3 to B2, and the rating remains under review. The change affects Aus$1.14bn (US$1.08bn) of debt.
