S&P upgrades Empark, notes to BB

Standard & Poor's said it raised its long-term corporate credit rating on Empark Aparcamientos y Servicios, SA to BB from BB-.

The outlook is stable.

At the same time, the agency raised the issue ratings on Empark Funding SA's €235 million secured fixed-rate notes due 2019 and €150 million secured floating-rate notes due 2019 to BB from BB-. The recovery rating on both of these issues is 4, indicating an expectation of average (30%-50%) recovery prospects for noteholders in the event of a payment default. S&P sees the recovery prospects as being in the higher half of the 30%-50% range.

S&P said the upgrade reflects Empark's good operating performance in 2014 on the back of a recovering Spanish economy, which saw the company's financial ratios improve.

In the agency’s revised base-case scenario, it now expects Empark will maintain adjusted FFO to debt above 6% over the next two years as the Spanish economy continues to strengthen and lead to growing volumes in parking facilities. S&P therefore revised its assessment of Empark's financial risk profile to "aggressive" from "highly leveraged."

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