S&P rates ICA Panama notes BBB-

Standard & Poor's said it assigned a BBB- foreign-currency rating to ICA Panama's proposed $125 million tranche B senior notes due 2025. S&P affirmed the BBB- foreign-currency rating on $150 million tranche A senior notes due 2025.

The outlook is stable.

Proceeds will be used to address corporate needs.

According to S&P, the ratings reflect cash flow generation capacity, a bankruptcy-remote structure, a strong financial structure, bondholder protection against toll-road expropriation and the lack of competition offered by current alternative roads.

These strengths are offset by the dependence on continued economic growth in the Republic of Panama (foreign-currency BB/positive/B; local-currency: BB/positive), the network's inability to deliver and absorb traffic, and potential limitations on real tariff increases after 2008, the agency said.

© 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.