This report does not constitute a rating action. Atlantica Transmisión Sur S.A. (ATS or the project) has completed the expansion of its transportation capacity at two substations, Montalvo and Poroma, achieving commercial operation on Oct. 10, 2025. Furthermore, during the first quarter of 2025, the project transitioned its operations and maintenance (O&M) agreement to Atlantica Peru S.A. (ATP or the operator), an affiliated entity of the project's sponsor, Atlantica Sustainable Infrastructure PLC (Atlantica; B+/Stable/--). We expect that the expansion of the project's substations will generate incremental annual revenue of $3.0 million to $3.5 million. Higher revenue strengthens our minimum and median base-case debt service coverage ratio (DSCR) expectations to 1.5x and 1.6x, respectively, from previous projection of 1.4x and 1.5x.
