Research Update: Metropolitano de Tenerife 'A/A-1' Ratings Affirmed; Outlook Negative

We consider Metropolitano de Tenerife S.A. (MTSA) to be a government-related entity of the Cabildo de Tenerife. We think that there is an almost certain likelihood that MTSA would receive extraordinary government support from the Cabildo de Tenerife, if needed, given the company's critical role and integral link with its government owner. We do not believe the cabildo's creditworthiness could be above Spain's; nor do we think that MTSA's creditworthiness could be stronger than that of the cabildo, from which it receives ongoing support. We have therefore affirmed our long and short-term issuer credit ratings on MTSA at 'A/A-1' and maintained the negative outlook in line with that on Spain. On Oct. 22, 2021, S&P Global ratings affirmed its 'A/A-1'

...- We consider Metropolitano de Tenerife S.A. (MTSA) to be a government-related entity of the Cabildo de Tenerife. - We think that there is an almost certain likelihood that MTSA would receive extraordinary government support from the Cabildo de Tenerife, if needed, given the company's critical role and integral link with its government owner. - We do not believe the cabildo's creditworthiness could be above Spain's; nor do we think that MTSA's creditworthiness could be stronger than that of the cabildo, from which it receives ongoing support. - We have therefore affirmed our long and short-term issuer credit ratings on MTSA at 'A/A-1' and maintained the negative outlook in line with that on Spain....

Research Update