Fitch lowers Autopista Rio Magdalena

Fitch Ratings said it lowered its ratings for Autopista Rio Magdalena’s UVR notes for COP 915.5 billion due June 2036 and UVR loan for COP 278 billion due in June 2036 to BB/AA(col) from BB+/AA+(col).

The agency also removed the ratings from rating watch negative and assigned a negative outlook.

“The downgrade reflects impacts from Construcciones El Condor, SA's (CEC) deteriorating credit quality. CEC is the sole contractor for the execution of the toll road's functional units (UF) UF1 and UF2. Under Fitch's ‘Completion Risk Criteria,’ the level of performance security to cover replacement cost premium is adequate; however, the project rating is limited by the credit quality of the engineering, procurement and construction (EPC) contractor during the construction phase,” Fitch said in a press release.

The outlook reflects the project’s tight deadline to meet the milestones set by the Agencia Nacional de Infraestructura and the financial agreement, the agency said. “Fitch believes the project still faces relevant completion risk.”

© 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.