Research Update: Nouvelle Autoroute 30 S.E.N.C 'BBB+' Rating Affirmed; Outlook Negative On Limited Cushion To Absorb Underperformance

S&P Global Ratings has affirmed our 'BBB+' rating on Nouvelle Autoroute 30 S.E.N.C.'s (A30 Express') C$1.2 billion 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. Since our last review in April, the car traffic on A30 Express failed to recover to our expected levels because of prolonged lockdown-like conditions. We expected car traffic would recover to about 90% of 2019 actual traffic by September 2020; however, it recovered to only about 80%, and fell close to 35% and 25% in October and November, respectively, with a surge in COVID-19 cases. That

...- S&P Global Ratings has affirmed our '###+' rating on Nouvelle Autoroute 30 S.E.N.C.'s (A30 Express') C$1.2 billion 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. - Since our last review in April, the car traffic on A30 Express failed to recover to our expected levels because of prolonged lockdown-like conditions. We expected car traffic would recover to about 90% of 2019 actual traffic by September 2020; however, it recovered to only about 80%, and fell close to 35% and 25% in October and November, respectively, with a surge in COVID-19 cases. - That said, the project's toll rates for next year are set to decline by about 25% (and we do not expect them revert to 2020 levels until after 2024 under our revised base case) unless the project is able to defend its force majeure claim. As such, we anticipate the project's...

Research Update