Fitch rates Fermaca notes BBB-

Fitch Ratings said it has assigned a BBB- rating with a stable outlook to Fermaca Enterprises, S. de RL de CV's $550 million of 6.375% notes due 2038.

The rating mainly reflects:

• An experienced sponsor which has successfully operated one of the assets for almost 11 years;

• The fact that both pipelines are operating under long-term firm-basis contracts with BBB+ counterparties within a highly regulated industry; and

• Stable and predictable revenue and profit base and leverage and coverage ratios that adequately compare with other availability-based projects in the energy sector that are currently rated by Fitch.

The agency said that the rating also incorporates the view that the provisions included in the early termination clauses of the ship-or-pay agreement with Mexico's federal electricity commission to pay for unrecovered sunk costs and lost profits would likely be sufficient to cover the debt outstanding balance should a termination occur.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.