Moody's cuts Inversiones Alsacia

Moody's Investors Service said it downgraded the rating on Inversiones Alsacia to Ba3 from Ba2 following the resolution of the review for downgrade that was assigned on Dec. 28, 2012.

The rating carries a negative outlook.

Moody's said the one notch downgrade results from its assessment of a combination of factors that are geared to providing more stable revenues going forward, but others which indicate that financial stability and viability remain volatile in ways that are not mitigated by the compensation regimes of the concession agreement.

These expose the project to very possible scenarios that could produce debt service coverage ratios that are more in line with lower rated credits.

The rating takes into account the supportive governmental and legal framework, which helps to maintain the rating in the Ba rating category, the agency said.

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