Fitch rates Autopista Rio Magdalena notes BBB-

Fitch Ratings said it assigned expected ratings of BBB- to Autopista Rio Magdalena’s planned UVR notes for up to COP 900 billion due in June 2036 and UVR loan for up to COP 275 billion due in June 2036. The outlook is negative.

Fitch also assigned national ratings of AA+(col) with stable outlook to both the UVR notes and the UVR loan.

“The assigned ratings are based on the strong mitigation of the project's exposure to completion risk and on a concession agreement structure that limits revenue risk due to the existence of traffic top-ups and grant payments. The ratings are also supported by a satisfactory tariff adjustment mechanism that allows to increase toll rates by inflation every year, and a strong debt structure that includes cash sweep and prepayment mechanisms that largely protect the transaction from traffic performance being materially different from expected,” the agency said in a press release.

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