Fitch rates Alsacia bonds BB+

Fitch Ratings said it assigned Inversiones Alsacia SA's $464 million senior secured bonds an expected BB+ rating.

The bonds are expected to be issued in accordance with Rule 144A in the United States and pursuant to Regulation S outside the United States.

The rating is contingent upon the receipt of final documents.

The bonds will be secured by a first-lien interest of total revenues and contract rights, as well as all assets owned by Inversiones Alsacia and Express de Santiago Uno, SA. Both companies are bus concessionaires of the Transantiago System, which provides bus services to the city of Santiago in Chile, Fitch said.

The rating is supported by the company's strong legal framework in an A+-rated country with experience in concessions of public services, specifically in the transportation sector, the agency said.

Several operative risks may arise from Alsacia's planned acquisition of Express, Fitch said, and the labor union has the ability to hamper activities and operations.

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