S&P: Manila Cavite on watch

Standard & Poor's said it placed the B rating on the $160 million series 2010-1 notes due 2022 issued by Manila Cavite Toll Road Finance Co. on CreditWatch with negative implications.

The CreditWatch placement reflects the fact that anticipated traffic growth on a newly opened extension segment of the Manila Cavite Toll Expressway has not materialized because of a pipe-laying project, which is affecting the feeder roads, S&P said.

Actual traffic on the extension road has been weak and much lower than forecasted levels, the agency said. Traffic on the existing road also has been affected by the elevation works, S&P said.

The project's liquidity could be affected as it will continue to rely on its reserve funds to cover cash shortfalls if traffic does not ramp-up faster, the agency said.

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