Moody’s changes Panama Canal Railway view

Moody's Investors Service said it affirmed the Ba1 rating assigned to Panama Canal Railway Co.'s senior secured notes and changed the outlook to negative from stable.

The notes had an original face value of $100 million with a final maturity in 2026.

The notes are amortizing and as of June, the outstanding balance was $68.2 million.

“The outlook change to negative from stable on the Ba1 rating assigned to PCRC reflects the downward trend of container volumes that has caused a deterioration of key financial metrics,” Moody’s said in a news release.

“While PCRC exhibited strong volume performance over the period 2010-2014, since 2015 volumes have been falling on an average of 8.7% per year.”

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