Fitch to rate Caucedo notes BB-

Fitch Ratings said it expects to rate Caucedo Investments Inc.'s $180 million senior secured notes BB-.

The outlook is stable.

Proceeds will be used to refinance the $97.8 million used to improve the project's facilities, fund upcoming capital expenditures, complete yard infrastructure and dredging improvements, pay $50 million in dividends to shareholders and to fund the interest reserve account in an amount equal to 100% of the interest payment due and payable on the following interest payment date.

The ratings reflect demand risk partially mitigated by port's strategic importance, rate setting flexibility, strong competitive position supported by modern infrastructure, moderate debt levels and weak structural features compared with other port transactions, according to the agency.

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