Fitch applies BB+ to DME LPNs

Fitch Ratings said it assigned DME Airport DAC’s dollar-denominated five-year loan participation notes a BB+(EXP) expected rating.

The outlook is stable.

At closing, the agency said it expects to affirm both DME Ltd.'s long-term issuer default rating at BB+ and the existing notes' rating at BB+.

“DME benefits from growing, moderately volatile, largely origin & destination (O&D) and leisure-dominated traffic from the large Moscow catchment area. De-regulated tariffs provide pricing flexibility within a competitive airport market,” Fitch said in a news release.

“The investment program is ambitious but modular.

“Our revised leverage forecasts remain low. However, the weak debt structure subject to refinance and FX risk coupled with corporate governance and some political, legal and regulatory uncertainty negatively affect the ratings,” the agency added in the release.

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