S&P trims Vespucio Norte Express

S&P said it downgraded debt ratings on Sociedad Concesionaria Vespucio Norte Express SA to BBB from BBB+.

On Jan. 31, the ministry of public works eliminated the 3.5% annual increase above inflation. The lower rates will reduce the company’s minimum and average debt service coverage ratios to about 1.4x and 1.7x, respectively. Previously, S&P assumed the rates would be 1.7x and 2x, respectively.

“Our BBB debt rating reflects our expectations of sound, but slipping, financial metrics between 2020 and the notes' maturity in December 2028 given the new rate adjustment mechanism,” S&P said in a press release.

The outlook is stable.

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