Moody’s upgrades Empark, debt to Ba3

Moody's Investors Service said it upgraded the senior secured rating on the notes issued by Empark Funding SA, a financing conduit of Empark Aparcamientos y Servicios SA, to Ba3 from B1.

Concurrently, the agency upgraded Empark’s corporate family rating to Ba3 from B1 and probability of default rating to Ba2-PD from Ba3-PD.

The outlook is stable.

Moody’s said the action recognizes the continued positive growth in Empark's off-street division and the deleveraging of the company with funds from operations (FFO)/debt currently at around 7%.

Empark reported like-for-like revenue growth of 4.1% in 2015 in its off-street concessions segment, which is a key contributor to the company's cash flow. The increase in revenue was driven primarily by growth in volumes as low inflation means tariffs are not increasing, the agency said. Better volume performance reflects the improved macroeconomic environment in Spain and Portugal, where Empark primarily operates.

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