S&P acts on Chilean toll roads

S&P said it downgraded Sociedad Concesionaria Vespucio Norte Express SA to BBB- from BBB, but affirmed the A- rating on Sociedad Concesionaria Autopista Central SA and the A rating on Sociedad Concesionaria Costanera Norte SA.

The agency also placed the ratings for Vespucio Norte Express and Autopista Central on CreditWatch with negative implications.

S&P cited Chilean government measures to limit the spread of the coronavirus, which now includes a lockdown of light vehicles for about two months. These measures led the agency to revise its forecasts for the three toll roads.

“The rating action on VNE mainly reflect our expectation of a significant deterioration in its financial performance amid a severe traffic reduction this year of about 25% stemming from the outbreak of Covid-19, which will pressure the minimum and average DSCRs to 1.30x (in 2024) and 1.40x, versus our previous forecast of 1.40x (in 2024) and 1.70x, respectively,” said S&P in a press release.

S&P said it affirmed the other two ratings because even with the traffic reductions, they are strong enough to maintain their current ratings.

© 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.