...- We affirmed our 'A' rating on 407 International Inc.'s existing senior debt, our 'A-' rating on the company's junior debt, and our '###' rating on its subordinated debt. The outlook is stable. - The rating affirmation reflects the project's substantial liquidity--$1.5 billion in cash and another $500 million in the form of one year of debt service reserve--which largely mitigates the decreased traffic and toll revenues stemming from the coronavirus pandemic. A stay-in-place and other coronavirus-containment measures have resulted in significant decline in traffic (e.g., traffic on March 23 was about 66% lower than the same time last year). Coupled with prolonged locked down, a massive economic slowdown, and the corresponding potential dislocation of labor markets could mean significantly lower toll revenues in 2020 and likely onward compared to our previous base case forecast. - However, 407's $1.5 billion cash balance can alone cover more than two years of operating and maintenance (O&M)...
