The rail network performs a pivotal role in freight, tourist, and commuter transportation in Australia. Significant investment is required, however, to upgrade the existing rail network and rolling stock to modern standards across all states in Australia. Accordingly, the sector will increasingly look to the bank and capital markets for funding to develop the various projects. Despite construction and operational problems with rail projects in Australia and elsewhere, properly risk-structured, and appropriately financed projects can still achieve the solid investment-grade ratings that will assist in accessing funding. Indeed, there are already a number of precedents, particularly in the U.K., which demonstrate that projects can proceed even when construction, operational, and passenger volume risks appear insurmountable. The continuing demand for improvements...
Companies mentioned in this report are:
- Australia (Commonwealth of) (Unsolicited Ratings)
- Angel Trains Ltd.
- Network Rail Infrastructure Finance PLC
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