Research Update: Atlantica Transmision Sur S.A. SACP Revised Up To 'a-' On Stronger Credit Metrics, 'BBB-' Debt Rating Affirmed

Higher than expected U.S. inflation in the past three years had a positive cumulative effect on Atlantica Transmisión Sur S.A.'s (ATS or the project) cash flows available for debt service (CFADS), given that all its revenues, but not all its costs, adjust by this variable. We now anticipate a minimum debt service coverage ratio (DSCR) of 1.42x in April 2025, slightly up from our previous projection of 1.39x in April 2024. On Aug. 9, 2024, we revised upward our stand-alone credit profile (SACP) on ATS by one notch to 'a-' from 'bbb+' and affirmed our 'BBB-' issue-level rating, which continues to be capped at the sovereign level. The stable outlook on the project mirrors that on Peru and captures our

...- Higher than expected U.S. inflation in the past three years had a positive cumulative effect on Atlantica Transmisi=n Sur S.A.'s (ATS or the project) cash flows available for debt service (CFADS), given that all its revenues, but not all its costs, adjust by this variable. We now anticipate a minimum debt service coverage ratio (DSCR) of 1.42x in April 2025, slightly up from our previous projection of 1.39x in April 2024. - On Aug. 9, 2024, we revised upward our stand-alone credit profile (SACP) on ATS by one notch to 'a-' from '###+' and affirmed our '###-' issue-level rating, which continues to be capped at the sovereign level. - The stable outlook on the project mirrors that on Peru and captures our view that ATS can't be rated above the sovereign because of the regulated nature of its operations....

Research Update