Moody's upgrades Metropistas notes

Moody's Investors Service said it upgraded Metropistas’ $435 million 6¾% amortizing senior secured notes due 2035 to Ba3 from B1.

The outlook is stable.

The upgrade reflects the company's solid traffic and revenue trends, which are expected to continue despite the demanding economic perspectives facing the Commonwealth of Puerto Rico, Moody's said.

Following the short-term impact from Hurricane Maria, Metropistas' traffic grew 7.6% for the period from January through November 2018, compared to the same period in 2017, the agency explained.

Revenues grew by 9.6% in the same period, supported by the sustained traffic and toll increases, Moody's said.

The underlying credit quality of Metropistas also considers the long-term nature of the concession, which matures in 2061 following a 2016 amendment to extend the concession by 10 years, the agency said.

The stable outlook reflects an expectation that traffic will remain resilient to Puerto Rico's weak economic conditions and operating environment, Moody's said.

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