24th Dec 2019 12:03
(Alliance News) - Moody's Investors Service on Tuesday said it has affirmed the Baa3 senior unsecured rating of Go-Ahead Group PLC, and changed the outlook to positive from stable.
The ratings agency noted that the public transport operator's financial metrics have been at the top end of Moody's expectations for a Baa3 rating. The UK rail business has improved as the operational challenges that had hurt profitability and created financial uncertainty in Go-Ahead's key franchises now have reduced.
The positive outlook, meanwhile, reflects the FTSE 250-listed company's strong financial position compared to Moody's rating guidance, which, if continued, could result in a further rating upgrade.
Given the positive outlook, Moody's does not currently anticipate downward rating pressure, it said.
"Go-Ahead's positive outlook reflects a stabilisation of the operational challenges facing the group's rail business, coupled with strong financial metrics, which, if continued, could result in a rating upgrade," said Tomas O'Loughlin, Moody's vice president.
Go-Ahead shares were trading 2.2% higher in London on Tuesday midday at 2,242.00 pence each.
By Evelina Grecenko; [email protected]
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