Fitch rates Colombian project loans, notes BB+

Fitch Ratings said it assigned expected BB+ ratings with a stable outlook to Patrimonio Autonomo Union del Sur loans and notes, in connection with the Rumichaca––Pasto toll road project in Colombia.

The project has a $130 million loan due in April 2030, a $149 million loan due in April 2037, a COP 1.013 billion loan due August 2030 and UVR notes for up to COP 995 billion due February 2041.

Fitch also assigned national ratings of AA+(col) with a positive outlook to the debt.

“The ratings reflect the project's robust concession agreement structure limiting exposure to revenue risk via traffic top-ups and grantor payments. The ratings are further supported by an adequate tariff adjustment mechanism that increases toll rates by inflation. The ratings consider a strong debt structure, characterized by robust reserve accounts, cash sweep mechanisms that largely protect the transaction from traffic performance being materially above or below expected, and a satisfactory distribution test,” the agency said in a press release.

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