Moody's rates Empark notes B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B1-PD probability of default rating to Empark Aparcamientos y Servicios SA and a provisional (P)B2 rating to the €385 million of senior secured notes due 2019 to be issued by Empark Funding SA. The outlook is stable.

The agency said the B2 corporate family rating primarily reflects the competitive nature of the car parking sector and the company's limited scale; renewal risk associated with maturing concessions and contracts; declining traffic volumes, which reflect the weak macroeconomic environment in Spain and Portugal; and high financial leverage of around 8.3 times.

More positively, however, the rating recognizes the strategic location of the company's assets and Empark's long track record of operations; its strict cost controls, which have enabled the company to maintain a relatively stable recurring EBITDA despite contraction in volumes; and a significant share of long-term off-street concessions. Moody's said.

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