S&P trims ENA Sur Trust

S&P said it downgraded the rating on ENA Sur Trust’s $170 million of notes to B+ from BBB-, citing a forecasted traffic drop of almost 40% this year.

“We also anticipate a slower recovery of traffic levels in the next three months than what we previously projected, amid increasing competition from free alternative roads that due to the current mobility restrictions are less congested. In this scenario, we do not expect internally generated cash flow will be enough to cover debt service payments this year, and therefore project ENA Sur to partially use existing liquidity reserves,” S&P said in a press release.

“In our view, there is sufficient liquidity in the structure to handle the shortfall, namely due to the six-month debt service reserve account (DSRA) of about $9.6 million, and excess cash already held in the project's accounts of about $4.4 million to pay interest and principal of the class A notes,” the agency said.

S&P said it is keeping the rating on CreditWatch with negative implications.

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