Moody's upgrades Empark

Moody's Investors Service said it upgraded Empark Aparcamientos y Servicios SA's corporate family rating to B1 from B2, its probability of default rating to Ba3-PD from B1-PD and Empark Funding SA's senior secured notes to B1 from B2. The outlook is stable.

The agency said the upgrade reflects the improving business sentiment and reduced challenges that Empark faces in light of the improving trend of the economies in Spain and Portugal, where the company primarily operates.

Moody's said the B1 rating is constrained by the company's small scale, high financial leverage and renewal risk associated with maturing concessions and contracts, albeit mitigated by Empark's track record of contract renewals.

More positively, the rating reflects the strategic location of the company's assets and Empark's long track record of operations, its strict cost controls and a significant share of long-term off-street concessions, the agency said.

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