Research Update: Rutas de Lima S.A.C. Outlook Revised To Stable From Developing On Adequate Performance; 'BB' Rating Affirmed

We revised our base-case scenario for Peru-based urban toll road operator RdL and excluded the construction of the Ramiro Priale road because we don't expect work on that to start in the next year. The municipality of Lima is behind schedule on the expropriation of the lands where the asset will be located and consequently, we don't project additional financing at the project level until the process advances. We're also removing the cash flows associated with Ramiro Priale from our projections, which results in a lower minimum debt service coverage metric (DSCR; around 1.15x compared to the previous 1.25x). This minimum DSCR now occurs around 2030, when the project starts paying principal on its bonds. We're affirming RdL's debt rating

...+ We revised our base-case scenario for Peru-based urban toll road operator RdL and excluded the construction of the Ramiro Priale road because we don't expect work on that to start in the next year. The municipality of Lima is behind schedule on the expropriation of the lands where the asset will be located and consequently, we don't project additional financing at the project level until the process advances. + We're also removing the cash flows associated with Ramiro Priale from our projections, which results in a lower minimum debt service coverage metric (DSCR; around 1.15x compared to the previous 1.25x). This minimum DSCR now occurs around 2030, when the project starts paying principal on its bonds. + We're affirming RdL's debt rating at '##', now driven by our view of Panamericana Norte and Panamericana Sur's operating and financial performance. We're revising the outlook to stable from developing. + The stable outlook reflects our expectation of adequate operating and financial...

Research Update