APA Group (APA) has been advised that Moody’s Rating Services has assigned a Baa2 corporate credit rating (outlook stable) to APT Pipelines Ltd, the borrowing entity of APA.

This is APA’s second credit rating and is equivalent to its initial credit rating of BBB (stable) issued by Standard & Poor’s in June 2009.

APA Chief Financial Officer Peter Fredricson said the Moody’s rating was additional confirmation of APA’s standing as an investment grade company.

“This credit rating, together with the rating from Standard & Poor’s enables APA to further pursue our stated capital management strategy of accessing a broader range of offshore debt capital markets than has historically been available to the company,” he said.

“It is encouraging to note that during the past six months, all of the markets that we will now look to access have seen significant increases in liquidity and reductions in borrowing margins, relative to this time last year. This second credit rating and improved market conditions gives APA greater flexibility in meeting its future refinancing needs.”

He also said it was pleasing to see that Moody’s recognised the strengths of APA's business in noting “APA’s strong business profile attributed to the stable cash flow from the diversified portfolio which it owns and operates”.

A copy of Moody’s media release is attached.