S&P lowers Promotora

Standard & Poor's said it lowered the global scale senior secured debt ratings on Promotora y Administradora de Carreteras SA de CV's Ps. 4.2 billion bonds due 2028 to BBB+ from AA and affirmed the long-term mxAAA national scale rating.

The agency affirmed the mxA+ national scale rating on the toll road's Ps. 1.47 billion in subordinated debt due 2030.

The outlook is stable.

The action reflects the downgrade of MBIA Insurance Corp. (BBB+/negative).

The BBB+ rating on the senior notes reflects the company's debt service coverage ratios, S&P said, as well as and a zero-cash-flow structure, a strong financial structure and the bankruptcy-remote status of bondholders from the concessionaire.

Strong traffic volume on the Mexico-Toluca toll road and the strong Mexico City economy, also support the rating, the agency said.

These strengths are tempered by significant competition from the free alternative road, tolls higher than the national average and the toll road's crossing of a mountain in a seismic region, S&P noted.

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