Moody's rates Autovias notes Ba1

Moody's Investors Service said it assigned a Ba1 rating on the global scale and Aa2.br rating on the Brazilian national scale to the five-year R$100 million second-lien senior secured debentures to be issued by Autovias SA.

The agency also said it affirmed its issuer ratings of Ba1 on the global scale and Aa2.br on the Brazilian national scale and the Ba1 and Aa2 ratings assigned to R$405 million senior secured debentures issued in March.

The outlook is stable.

The ratings reflect the strong credit fundamentals of Autovias as shown by growth in vehicular traffic over the past three years and the supportive and stable regulatory environment over the past 12 years, Moody's said, as well as strong credit metrics for the rating category.

The ratings are constrained by the rather short remaining life of the concession, which expires in eight years with little prospects for renewal or extension, the agency said.

The ratings are further pressured by the risks associated with the significant cash needs of Autovias' controlling shareholder, OHL Brasil, which is forecasted to require sizeable dividends and occasional intercompany loans, Moody's added.

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