S&P puts Channel Link Enterprises Finance on watch

S&P said it placed the ratings for Channel Link Enterprises Finance plc and its notes on CreditWatch with negative implications.

The agency also put on CreditWatch negative the BBB+ S&P underlying rating on Channel Link's G3 and G6 notes. S&P affirmed the AA long-term rating, with a stable outlook, on these notes, reflecting the rating on Assured Guaranty (Europe) plc.

“We project that a 22% revenues decline from car and truck shuttle services, combined with a 26% drop in rail revenue, may lower the annual debt service coverage ratio to 1.2x in December 2020, with potential to decline further if the traffic doesn't pick up this summer,” S&P said in a press release.

The agency said it could lower the S&P underyling rating and the ratings on Channel Link's unguaranteed notes by one or more notches over the next three months if traffic on the Eurotunnel doesn't bounce back once mobility between the two countries is restored.

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