S&P rates Promotora bonds mxAA+

Standard & Poor's said it assigned an mxAA+ CaVal Mexican national scale rating to the Ps. 6.5 billion in bonds due 2028 by Promotora y Administradora de Carreteras SA de CV.

The outlook is stable.

Proceeds will be used to prepay existing debt, set up agreed reserves and cover the issue's expenses.

S&P said strengths include the bankruptcy remoteness of bondholders, debt service coverage ratios and important protection measures in the financial structure.

These strengths are partially offset by a structure that contemplates a bullet payment, limited period between the note's maturity and the end of the concession, as well as sensitivity to price hikes, the agency noted.

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