S&P cuts Aeropuertos Dominicanos Siglo

S&P said it lowered Aeropuertos Dominicanos Siglo XXI SA (Aerodom) to B+ from BB-.

The pandemic and tough global and local air travel restrictions led S&P to update its base-case scenario, which assumes a 58% drop in passenger traffic at Aerodom in 2020, the agency said. S&P also projects a longer recovery to 2019 levels than it had originally projected.

“Consequently, we expect a further weakening in Aerodom's cash flows in 2020 and to a lesser extent in 2021,” the agency said in a press release.

“Given the traffic drop and flat rates starting in 2020, we expect the company's adjusted leverage to temporarily rise and exceed our 6x threshold for a downgrade,” S&P said.

The outlook is negative.

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