S&P cuts ACI Airport Sudamerica

S&P said it downgraded the rating on ACI Airport Sudamerica SA’s $200 million of notes to BB from BBB and placed it on CreditWatch with negative implications.

“The downgrade of ACI reflects our expectations of a significant decline in revenue during the first half of the year due to a 40%-50% plunge in traffic and 40% in duty-free sales, which will erode financial metrics. Our new expectations are based on the measures the Uruguayan government and airlines have taken so far in order to prevent the virus from spreading further,” said S&P in a press release.

“Although there’s uncertainty regarding the duration of the suspension of flights, which makes it difficult to forecast the total impact on the project’s financial metrics for 2020 and the subsequent years, we now expect minimum and average DSCRs of 1.10x in 2020 and 1.60x, respectively, versus the previous forecast of 1.40x and 2.65x, respectively, the agency said.

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