Research Update: Nouvelle Autoroute 30 'BBB+' Rating Affirmed As Fixed Revenues Alleviate COVID-19-Related Toll Revenue Decline

We have affirmed our 'BBB+' rating on Nouvelle Autoroute 30 S.E.N.C.'s (A30 Express') C$1.2 senior secured notes, comprising C$382.7 million series A notes due June 2042, C$445.6 million series B notes due March 2042, C$211.2 million series C notes due March 2033, and C$179.2 million series D notes due December 2032. Coronavirus-containment measures have resulted in a significant decline (about 50%-60% as of March 26th) in car traffic, but truck traffic has remained resilient, declining only 8%. Nevertheless, we expect the impact on A30 Express' overall cash flows to be relatively muted because availability-based revenues will contribute more than 70% of net revenues this year and the project bears only half of the decline in toll revenues due to the

...- We have affirmed our '###+' rating on Nouvelle Autoroute 30 S.E.N.C.'s (A30 Express') C$1.2 senior secured notes, comprising C$382.7 million series A notes due June 2042, C$445.6 million series B notes due March 2042, C$211.2 million series C notes due March 2033, and C$179.2 million series D notes due December 2032. - Coronavirus-containment measures have resulted in a significant decline (about 50%-60% as of March 26th) in car traffic, but truck traffic has remained resilient, declining only 8%. - Nevertheless, we expect the impact on A30 Express' overall cash flows to be relatively muted because availability-based revenues will contribute more than 70% of net revenues this year and the project bears only half of the decline in toll revenues due to the toll revenue-sharing mechanism in its concession agreement. - The stable outlook reflects our view that the project has an adequate cushion to withstand the impact of COVID-19 and the associated recession and that the project will still...

Research Update