Sydney's debt-laden Lane Cove tunnel owner says it has no plans to raise toll rates to recoup its losses from lower than anticipated traffic flows.
Connector Motorways announced on Thursday it had handed a "recapitalisation plan" to its financial guarantor MBIA Insurance Corp, and it would be considered over the "coming weeks".
A company spokesman said the financial talks were continuing, but motorists would see no change and it was business as usual for the tunnel.
"What's happening at the moment does not affect motorists, or the day-to-day operation of the tunnel," the spokesman said.
"Most importantly, the recapitalisation plan does not... include toll increases.
"Toll prices are set in the project deed signed with the NSW government, (meaning) toll prices increase quarterly with the CPI."
Connector Motorways has run up a $1.1 billion debt because usage of the Lane Cove Tunnel has been less than it forecast.
The tunnel, which links the M2 with the Gore Hill Freeway, was predicted to carry 100,000 vehicles a day when the original contract was signed with the NSW government.
Actual traffic usage is about half that amount, with the average weekday rate for July at 53,853 vehicles.
"The recapitalisation plan is supported by new traffic forecasts based on observed traffic to date," the spokesman also said.
The company also announced on Friday that rating agency Standard & Poor's had downgraded the tunnel project's underlying credit rating to B-.
The demotion comes after another agency, Moody's, issued a ratings downgrade earlier this year.
