S&P removes ENA Norte Trust from watch

S&P said it affirmed its BB+ issue-level rating on ENA Norte Trust’s $600 million of notes, and removed them from CreditWatch with negative implications.

“In the past four months, ENA Norte demonstrated more flexibility than what we previously anticipated to manage its cost structure, particularly operating expenses, which in the first half of the year decreased about $700,000 mainly due to lower billing costs of Maxipistas (the operator),” S&P said in a press release.

S&P said it changed the outlook to negative, which reflects a one-in-three chance of a downgrade in the six months if financial metrics worsen further, leading to a minimum debt service coverage ratio below 1.25x in our base-case scenario.

“This could happen if we perceive a harsher traffic drop in the following months amid a sluggish traffic recovery,” S&P said.

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