Moody's changes Brisa outlook to stable

Moody's Investors Service said it affirmed the Ba2 senior secured rating of Brisa Concessao Rodoviaria SA and changed the outlook to stable from negative.

The agency said the change of outlook is prompted by improvement in the traffic trends coupled with proactive management of upcoming debt maturities, which mitigates the refinancing risk over the medium term.

Moody's said its assessment of the company's credit quality continues to reflect the large size and importance of its network for Portugal's transport system; the transparency of the concession and regulatory framework; the company's modest capital investment program, which should support free cash flow generation; the covenant package and other creditor protections incorporated within its debt documentation; and a policy of prudent financial management.

However, the company's rating remains constrained by the volatile nature of traffic on its network, with significant traffic volume declines since the start of the financial crisis; high leverage; and the risks of being based in Portugal, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.