...The ratings reflect Red de Carreteras de Occidente, S.A.P.I. de C.V.'s (RCO) resilient traffic base and strategic toll road network, which connects major cities in central Mexico. A satisfactory rate-setting mechanism that allows annual tariff adjustments under a maximum average toll mechanism also supports the ratings. RCO has a senior secured, fully amortizing, debt structure with adequate structural features. Fitch Ratings' rating case projects a minimum debt service coverage ratio (DSCR) of 1.5x in 2026 and an average of 1.7x through 2029, when the new investments agreed under the concession amendment are expected to be completed. DSCR averages 3.9x from 2026 to 2048. These metrics are strong for the ratings under Fitch's criteria. However, the RCO's performance correlation with Mexico's economic environment constrains the international scale rating. RCO's solid financial profile and its strong resilience to severe stresses applied to volume assumptions--even beyond those observed under...
