Metropolitano de Tenerife, S.A.

This report does not constitute a rating action. Overview Key strengths Key risks Very favorable regulatory framework, with the proven supportive stance of the company?s only shareholder, the Cabildo Insular de Tenerife (CIT), which is the government of the island. Possibility of ridership reducing if free tickets are phased out. Minimal funding costs, with all debt concentrated in a single bullet bond issued at very favorable rates; the entity holds a debt reserve fund to avoid refinancing risk. Exposure to some volatility in electricity costs. Prudent and experienced management and technical team. The CIT owns and supervises Metrotenerife?s strategy and operations, which is essential to the government?s policy of fostering sustainable and efficient public transport on the island. Metrotenerife is

...S&P Global Ratings views Metropolitano de Tenerife, S.A. (Metrotenerife) as an essential tool to implement the CIT's mobility strategy. The CIT owns and supervises Metrotenerife's strategy and operations, which is essential to the government's policy of fostering sustainable and efficient public transport on the island. Metrotenerife is therefore one of the key enablers of the government's mobility strategy, with expansion plans funded through domestic sources and EU funds. The government's public transport subsidies led to record ridership, highlighting Metrotenerife's policy mandate. A record 24.9 million passengers used Metrotenerife's network in 2024, supported by government subsidies for public transport that stimulated demand. The potential expiry of these subsidies after 2025 could affect future demand, leading to normalized ridership or a slight decline....

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