Fitch rates Fideicomiso bonds BBB-, loans AA+(col)

Fitch Ratings said it expects to assign a BBB- rating to Fideicomiso PA Pacifico Tres’s dollar-denominated bonds for to up to $272 million and unit-value ratio bonds for up to 635,000 million in Colombian pesos.

The agency also said it assigned an AA+(col) rating for up to 475,000 million in Colombian pesos loan A and up to 300,000 million in Colombian pesos loan B.

The outlook is stable.

The assigned ratings are based on the adequate mitigation of the project's exposure to completion risk, low exposure to revenue risks and manageable operational profile, Fitch said.

The project consists of the construction of short road stretches, improvement of existing roads, two tunnels and several bridges, the agency said.

It involves a certain degree of complexity with the possibility of landslides due to unstable slopes, Fitch added.

But the agency said it believes the contractor has the experience and ability to successfully develop the project.

The completion schedule is adequate and the performance bond and secured loan facility provide enough liquidity to cover debt service should the contractor need to be replaced, Fitch said.

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