Moody's: Tranz Rail stable

Ratings agency Moody's has improved its outlook on Tranz Rail to stable from negative and maintained its B1 rating.

Moody's said yesterday that the improvement was the result of a review begun in July.

"The rating confirmation reflects the company's improved liquidity position as a result of the successful conclusion of the refinancing of its banking facilities and the finalisation of its agreement with the Aratere lease participants," it said.

The improvement in Tranz Rail's liquidity had prompted the change in outlook.

"Future direction of the rating depends on whether the company demonstrates sustainable significant improvement in its operating performance."

Tranz Rail shares hit a low of 92c last month, compared with $4 a year ago. They closed yesterday down 1c at $1.06.

- NZPA