Fitch: Pasajeros Metro notes A

Fitch Ratings said it assigned an expected A rating to Empresa de Transporte de Pasajeros Metro SA's proposed $500 million senior unsecured notes due in 2047.

The proceeds will be used to fund capital expenditures, refinance debt and for general corporate purposes, Fitch said.

The ratings consider support from the Chilean government through the financing of about two-thirds of the company’s capital-expenditure plan, the agency said.

The ratings also reflect the company’s stable operating results, capital structure and adequate liquidity, Fitch said.

The negative outlook on the company is based on Chile's negative outlook due to the country’s prolonged economic weakness, the agency said.

The credit links between the company and the government are strong based on their significant legal, financial and strategic ties, Fitch added.

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