Research Update: Rutas de Lima S.A.C. 'BB' Debt Rating Affirmed Despite Delays In Tariff Increase; Outlook Still Stable

On April 24, 2019, S&P Global Ratings affirmed its 'BB' rating on Rutas de Lima S.A.C.'s senior secured notes. We believe that although the tariff increase that Rutas de Lima is entitled to was delayed and traffic growth levels were marginally lower than expected, the Panamericana Norte and Sur toll roads will maintain adequate financial and operating performances until the notes are due. The municipality of Lima remains behind schedule for expropriating the lands required for the construction of the greenfield toll road "Ramiro Priale." Thus, we continue to exclude the associated construction works from our analysis. The stable outlook reflects our expectation that the Panamericana Norte and Sur roads will deliver stable operational and financial performances over the next

...- On April 24, 2019, S&P Global Ratings affirmed its '##' rating on Rutas de Lima S.A.C.'s senior secured notes. We believe that although the tariff increase that Rutas de Lima is entitled to was delayed and traffic growth levels were marginally lower than expected, the Panamericana Norte and Sur toll roads will maintain adequate financial and operating performances until the notes are due. - The municipality of Lima remains behind schedule for expropriating the lands required for the construction of the greenfield toll road "Ramiro Priale." Thus, we continue to exclude the associated construction works from our analysis. - The stable outlook reflects our expectation that the Panamericana Norte and Sur roads will deliver stable operational and financial performances over the next two years, supported by traffic growth between 3.0%-3.5% and projected annual debt service coverage ratios (DSCRs) at or above 1.07x....

Research Update