S&P upgrades Ostregion

S&P said it raised the long-term rating on the senior secured bonds issued by Ostregion Investmentgesellschaft Nr. 1 SA to BB- from B+.

The project's financial performance has improved as a result of sustainable administrative cost savings and higher-than-expected heavy vehicle traffic, S&P said.

Ostregion issued €775 million of senior secured bonds and loans to design and build a 52-kilometer stretch of motorway to the north of Vienna under a 33-year public-private partnership concession with Austria, the agency said.

The debt comprises €425 million floating rate senior secured bonds due March 31, 2039 and a €350 million floating rate senior secured European Investment Bank loan due March 30, 2038.

The outlook is stable, reflecting an expectation that the project will continue to operate in line with contractual requirements and maintain a reasonable financial profile with a minimum annual debt service coverage ratio of more than 1x throughout the term of the debt, S&P said.

The project has relatively straightforward operations and maintenance profile, the agency said, but does have some degree of complexity due to three tunnels and exposure to adverse winter weather conditions.

© 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.