Research Update: Mexico City Airport Trust 'BBB+' Debt Rating Still On Watch Negative On Planned Cash Tender And Consent Solicitation

The Mexico City Airport Trust announced today a cash tender offer for up to $1.8 billion of its outstanding debt securities. At the same time, the trust launched a consent solicitation to amend the terms of the outstanding indentures, with the intention of eliminating all references to the New Mexico City International Airport (NAICM or the project). After analyzing the documentation, the structure will remain unchanged as the TUA (the outgoing passenger charge) will continue to be the collateral for the debt, and there is no modification to the cash flow waterfall. On Dec. 3, 2018, S&P Global Ratings kept its 'BBB+' issue-level rating on Mexico City Airport Trust's (Fideicomiso 80460 or the trust) $6 billion senior secured bonds on

...+ The Mexico City Airport Trust announced today a cash tender offer for up to $1.8 billion of its outstanding debt securities. At the same time, the trust launched a consent solicitation to amend the terms of the outstanding indentures, with the intention of eliminating all references to the New Mexico City International Airport (NAICM or the project). + After analyzing the documentation, the structure will remain unchanged as the TUA (the outgoing passenger charge) will continue to be the collateral for the debt, and there is no modification to the cash flow waterfall. + On Dec. 3, 2018, S&P Global Ratings kept its '###+' issue-level rating on Mexico City Airport Trust's (Fideicomiso 80460 or the trust) $6 billion senior secured bonds on CreditWatch with negative implications, where we placed on Oct. 31, 2018. + We view these actions as an integral part of the government's strategy to discontinue the project. The negative CreditWatch listing reflects a 50% possibility of a downgrade in...

Research Update