The Infratil Ltd (ASX: IFT) share price is in focus today after the company received its first-ever investment grade credit rating of BBB+ with a stable outlook from S&P Global Ratings. The recognition is seen as a significant step in supporting Infratil's future growth and funding flexibility.
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What did Infratil report?
- S&P Global Ratings assigned an inaugural BBB+ investment grade credit rating to Infratil Limited
- The outlook for the rating is stable
- Rating reflects stable funding supported by substantial permanent capital
- Strong track record of investment performance cited by ratings agency
- New rating is a key milestone in Infratil's funding and growth strategy
What else do investors need to know?
Infratil says the investment grade rating is expected to broaden its funding options, improve borrowing terms, and reduce future financing costs. The company's track record over nearly three decades was highlighted as a foundation for the new rating.
The credit rating specifically applies to Infratil as an issuer, and not to its Infrastructure Bonds, which continue to be quoted on the NZX.
What did Infratil management say?
Andrew Carroll, Chief Financial Officer:
It is pleasing that the strength, quality and resilience of Infratil's business and track record has been recognised with a strong investment grade rating. Securing an investment-grade credit rating is a key milestone in Infratil's strategy to broaden funding options, enhance borrowing terms and reduce financing costs. After nearly three decades of strong funding support, Infratil's scale and this rating positions us to access new debt markets and strengthens our capacity for future growth.
What's next for Infratil?
With the investment grade rating in hand, Infratil aims to access new debt markets and further strengthen its funding base. Management believes this enhanced flexibility will help support future expansion and keep financing costs competitive.
The company is expected to continue focusing on its long-term strategy, supported by the ongoing stability and resilience that contributed to the improved credit profile.
Infratil share price snapshot
Over the last 12 months, Infratil shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
