S&P rates Aunor bonds BB+

S&P said it assigned a BB+ long-term issue rating to the €54.0 million fixed-rate senior secured bonds due 2025 issued by Autovia del Noroeste Concesionaria de la Comunidad Autonoma de la Region de Murcia, SA (Aunor).

The outlook is stable.

The recovery rating on the issued bonds is 1, reflecting 90% to 100% expected default recovery.

Aunor issued €54.0 million in fixed-rate senior secured bonds due 2025 to refinance an existing loan used to finance the construction, operation and maintenance of C-415, a shadow toll road in southeastern Spain, under a 1999 concession with the regional government of Murcia, S&P explained.

The BB+ rating reflects the relatively simple operations and strong track record of the company, as well as the lack of material market exposure, the agency said.

The rating also considers GDP growth in Spain and pricing increases consistent with the long-term inflation estimates, S&P said.

The project is expected to generate senior debt-service coverage ratios of at least 1.17x, and average annual debt-service coverage ratios of 1.18x.

This results in an operations phase stand-alone credit profile of BB+ and cash flow resilient to the downside, the agency said.

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