S&P: Road Management view to positive

S&P said it revised its outlook on the issue rating of the £165 million fixed-rate bonds due 2021 issued by Road Management Consolidated plc to positive from stable and affirmed the issue rating at B+ and recovery rating at 1.

S&P said the outlook revision reflects strong traffic performance in 2016 in which total traffic volumes across the two roads rose by over 3% in 2016, outperforming the U.K.'s economic performance indicators for a third consecutive year and above the 2% 2016 growth forecast.

“The project continues to retain sizable trapped cash reserves, including £13.8 million (as of Dec. 31, 2016) in the special reserve account (SRA), that have built up over time as a result of historical contractual lock-up and can be used to support senior debt service,” the agency said in a news release.

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