Research Update: Rutas de Lima Rating Raised To 'CCC+' And Off CreditWatch On Reinstatement Of Toll Collections; Outlook Negative

During July 2020, and after the Peruvian president communicated the finalization of the state of national emergency, the Rutas de Lima (RdL) project reinstated toll collections that were suspended for almost two months. Additionally, the Peruvian court has recently declared unconstitutional the law that allowed such toll suspension in May without an appropriate compensation, eliminating the risk of a similar mechanism in the future. Moreover, we now anticipate a faster recovery of traffic levels in 2020, leading to a total traffic decrease of 20% this year, versus our previous expectation of 35%. This difference is explained by the fact that a large portion of the Peruvian population has informal jobs, and in order to continue receiving an income, most people

...- During July 2020, and after the Peruvian president communicated the finalization of the state of national emergency, the Rutas de Lima (RdL) project reinstated toll collections that were suspended for almost two months. Additionally, the Peruvian court has recently declared unconstitutional the law that allowed such toll suspension in May without an appropriate compensation, eliminating the risk of a similar mechanism in the future. - Moreover, we now anticipate a faster recovery of traffic levels in 2020, leading to a total traffic decrease of 20% this year, versus our previous expectation of 35%. This difference is explained by the fact that a large portion of the Peruvian population has informal jobs, and in order to continue receiving an income, most people had to continue going to work. In addition, many industries in the country are now operating with protocols on site. - In this context, on Aug. 31, 2020, S&P Global Ratings raised its issue-level rating on RdL to '###+' from '###'...

Research Update