The ratings on France-based toll-road operator Sanef reflect its well-diversified toll-road network operations in France, with established traffic and above-average traffic growth rates, a supportive regulatory regime with favorable toll-escalation indices, and robust recurring cash flows. These strengths are offset by the significantly weakened state of Sanef's financial profile following its acquisition by Holding d'Infrastructures de Transport (HIT; A/Watch Neg/--). Sanef's credit protection ratios are expected to remain weak given the company's stated high dividend policy, which exposes lenders to large refinancing risk. Sanef operates Europe's fourth-largest interconnected toll-road network across key economic and tourist corridors in France. Since Sanef's privatization in February 2006, Abertis Infraestructuras S.A. (A/Stable/--) effectively controls Sanef through 57.6%-owned HIT, the intermediary vehicle that acquired Sanef.
