S&P rates Sociedad Concesionaria Autovia bonds BBB

Standard & Poor’s said it assigned a preliminary BBB long-term rating to the €186 million fixed-rate senior secured bonds due 2041 to be issued by Sociedad Concesionaria Autovia de la Plata SA.

The outlook is stable.

The company will use the proceeds to finance the construction, operation and maintenance of a section of the A-66 motorway between Benavente and Zamora in northwest Spain, S&P said.

The company has entered into an availability-based concession with the awarding authority, the Spanish Public Works Ministry with a term of 30 years that began Dec. 14, 2012, the agency said.

Construction started in July 2013 and is expected to be completed by the end of May 2015, S&P said.

Although there are minor ongoing projects, the agency said it considers that construction is no longer a material risk to the transaction.

The rating is currently constrained by the sovereign credit rating on Spain, which is significantly below the level of the company’s preliminary operations phase stand-alone credit profile, S&P said.

The rating on Spain is expected to constrain this credit in the long term, the agency added.

The company’s stable outlook reflects the stable outlook on Spain, S&P said.

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