Fitch rates Alsacia bonds BB

Fitch Ratings said it assigned Inversiones Alsacia SA's $464 million of senior secured bonds a BB rating with a stable outlook.

The bonds are 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, Fitch said.

The transaction consists of the acquisition of shares of Express not currently owned by GPS Group and the refinancing of all the existing debt of both Alsacia and Express, the agency added.

The proceeds will prepay outstanding loans, including fees and penalties, of both companies.

The rating considers a limited yet strong track record of service performance, experience in operating bus rapid transit systems in other Latin American countries, limited exposure to demand risk and predictable cash flows with an indexed availability payment structure, the agency said.

The ratings also consider the temporary portion of the government subsidy expires in 2014, operational risks that may arise from the acquisition and company's operation is smaller than those of the acquired enterprise, 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.