S&P rates Corredor Sur Trust notes BBB-

Standard & Poor's said it assigned its BBB- rating to ICA Panama's $140 million 20-year bonds backed by the collection rights on Corredor Sur's toll revenues. The bonds will be issued through BG Trust Inc., as trustee of the Corredor Sur Trust.

The outlook is stable.

Bond proceeds will be used to pay out the outstanding balance of ICA Panama's debt with the International Finance Corp. and address corporate needs.

S&P said the BBB- rating reflects Corredor Sur's cash flow generation capacity that is adequate to meet its debt obligations in a timely manner, the bankruptcy remote structure that isolates the bondholders from ICA Panama SA, a strong financial structure, and a lack of true competition offered by current alternative roads.

These strengths are offset, the agency said, by the dependence on continued economic growth in the Republic of Panama (foreign currency BB/stable/B; local currency BB/stable/--), the network's inability to deliver and absorb traffic, and revenue generation that depends on a single-asset toll road.

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