S&P lifts Autopista Monterrey-Cadereyta

S&P said it raised the global scale issue-level rating on Autopista Monterrey-Cadereyta's senior secured debt to BBB+ from BBB-.

The agency also said it raised the national scale rating on this debt to mxAAA from mxAA.

The debt consists of 637.8 million 5.7% fixed-rated inflation-protected senior secured notes due December 2029.

The outlook remains stable.

The upgrades consider a more favorable view of the project's operating and financial performance in the next 24 months, S&P explained.

Traffic on the toll road increased 24.3% in 2015. The rise was due to lower insecurity in the region and significant traffic growth at one of the toll road's tranches, the Via Rapida Aeropuerto, which boosted cash flow generation and the project's main coverage ratios, the agency said.

For 2016, S&P said it is assuming a traffic growth of 7%, which is higher than Mexico's GDP growth forecast but in line with the performance that the toll road has shown for the first few months of this year.

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