Research Update: Autopistas Metropolitanas De Puerto Rico LLC Issue-Level Rating Affirmed; Outlook Revised To Stable

We are affirming our 'BBB-' rating on Autopistas Metropolitanas de Puerto Rico LLC's existing $435 million 6.75% senior secured notes due June 2035, $181 million 7.5% senior secured notes due December 2038, and $120 million 7% senior secured notes due December 2038. Traffic in 2019 grew 0.44% compared to 2018, despite a toll rate increase of roughly 6.75% and the island's economic challenges. Despite this modest growth in 2019, our near-term base traffic forecast will continue to lower cash flows by about 6.6% to account for what we continue to see as some uncertainty around traffic volumes given the island's many challenges. Thereafter, we assume flat traffic transactions beginning in 2024. The revision of the outlook to stable from negative

...- We are affirming our '###-' rating on Autopistas Metropolitanas de Puerto Rico LLC's existing $435 million 6.75% senior secured notes due June 2035, $181 million 7.5% senior secured notes due December 2038, and $120 million 7% senior secured notes due December 2038. - Traffic in 2019 grew 0.44% compared to 2018, despite a toll rate increase of roughly 6.75% and the island's economic challenges. Despite this modest growth in 2019, our near-term base traffic forecast will continue to lower cash flows by about 6.6% to account for what we continue to see as some uncertainty around traffic volumes given the island's many challenges. Thereafter, we assume flat traffic transactions beginning in 2024. - The revision of the outlook to stable from negative reflects the project's demonstrated ability to generate positive traffic growth while implementing toll rate increases despite Puerto Rico's economic and social difficulties. With the refinancing of the project's bullet debt last year and another...

Research Update