S&P ups Road Management bonds

S&P said it raised its issue rating on the senior secured debt issued by Road Management Consolidated plc to BB+ from BB- and removed the rating from CreditWatch with positive implications where it was placed on Dec. 20, 2017.

The recovery rating is unchanged at 1+, reflecting an expectation of full recovery of outstanding principal in case of default.

The debt comprises £165 million fixed-rate senior secured bonds due 2021.

The outlook is positive.

S&P said Road Management Consolidated continues to service its senior secured debt from operating cash flows and to increase cash reserves, despite declining traffic volumes.

The total liquidity available to support debt repayment increased to about 93% of the £73.6 million of senior debt outstanding on June 30.

“The available liquidity reflects reserving requirements and the project being in lock-up for several years without having made distributions to its shareholders, providing for an effective mitigant to senior creditors,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.