S&P rates DME notes BB+

S&P said it affirmed the BB+ long-term and B short-term corporate credit ratings on DME Ltd., the operator of Moscow's Domodedovo airport.

The outlook remains negative.

S&P also said it affirmed the BB+ long-term and B short-term corporate credit ratings on DME's fully owned subsidiaries Domodedovo International Airport LLC and Hacienda Investments Ltd.

The outlook is negative.

S&P also said it affirmed the BB+ rating on the loan participation notes due 2018 issued by special-purpose vehicle DME Airport Ltd. and assigned a BB+ rating to the special purpose vehicle’s proposed loan participation notes due 2021.

The notes will be on-lent to Hacienda, DME's fully owned core operating subsidiary, the agency noted.

The group is planning to use the proceeds of the new issue to repurchase its outstanding notes, S&P said.

The remaining proceeds will be used partly finance its capital expenditure program, which increased recently due to expansion of the existing terminal and construction of a new one, the agency said.

The ratings reflect an expectation that the company's financial performance will be slightly weaker in the next few years due to the expansion program, which coincides with the decline in passenger traffic at the airport in 2015 and 2016, S&P said.

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