Rutas de Lima 'BBB-' Rating Affirmed And Off Watch On The Same Action On Odebrecht And Replacement Of Liquidity Provider

In September 2015, we placed our 'BBB-' rating on Odebrecht on CreditWatch with negative implications following the downgrade of Brazil to 'BB+' from 'BBB-' on foreign currency scale and to 'BBB-' from 'BBB+' on local currency scale. We believe Odebrecht is a key counterparty for Peru-based toll road operator, RdL, during the construction stage. Therefore, we placed our 'BBB-' debt rating on RdL on CreditWatch negative, indicating that there was a 50% chance of a downgrade, following a similar action on Odebrecht. The CreditWatch negative listing on RdL also reflected the initial stage of its replacement of the liquidity facility provider after credit quality of one of its financial counterparties, Banco Itau BBA S.A. Nassau, deteriorated. We affirmed and removed

...+ In September 2015, we placed our '###-' rating on Odebrecht on CreditWatch with negative implications following the downgrade of Brazil to '##+' from '###-' on foreign currency scale and to '###-' from '###+' on local currency scale. + We believe Odebrecht is a key counterparty for Peru-based toll road operator, RdL, during the construction stage. Therefore, we placed our '###-' debt rating on RdL on CreditWatch negative, indicating that there was a 50% chance of a downgrade, following a similar action on Odebrecht. + The CreditWatch negative listing on RdL also reflected the initial stage of its replacement of the liquidity facility provider after credit quality of one of its financial counterparties, Banco Itau BBA S.A. Nassau, deteriorated. + We affirmed and removed the rating from CreditWatch on Odebrecht in November 2015 and assigned a negative outlook because we expect the company will pass a hypothetical sovereign distress. In addition, on Dec. 21, 2015, RdL completed the replacement...

Ratings Action