Fitch cuts Alsacia bonds

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

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

The revised rating is based on changes in interest rates to 8% from 7.5%, Fitch said, along with other changes in the capital structure.

The modification sufficiently reduces the project's financial flexibility to a level commensurate with a BB rating, the agency said.

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, SA and Express de Santiago Uno, SA, excluding the Huachuraba bus terminal, Fitch said.

With the acquisition, the two aim to become the largest Transantiago bus operator in Santiago and to obtain cost savings derived by synergies, the agency added.

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