S&P ups Panama Railway view to stable

S&P said it revised Panama Canal Railway Co.’s outlook to stable from negative and affirmed its BB- ratings on the issuer and its $100 million of 7% senior secured notes due 2026.

“PCRC has fully recovered from the operating setback involving a vessel colliding with the Gamboa Bridge that forced the railroad to suspend operations in the third quarter of 2020 and resulted in a spike in its leverage ratios. In the first nine months of 2021, the company reported a solid operating performance transporting about 226,340 containers, which is 98% of the total freight volume that we considered in our previous base case for 2021,” the agency said in a press release.

S&P said it forecasts PCRC delivering about $47million in revenue in 2021–excluding the proceeds from the business interruption insurance claim it received in August.

The estimate is “well above” previous expectations of about $36 million, the agency said.

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