Ratings roundup: EcoRodovias, Ecovías, Rutas del Bosque bonds

Tuesday, December 27, 2011

Standard & Poor's (S&P) has upgraded its rating of Brazilian highway concessionaire EcoRodovias (Bovespa: ECOR3) to brAA+ from brA+, with a stable outlook, the agency said in a report.

The upgrade reflects a positive evaluation of the concessionaire's business profile, with projects demonstrating a favorable track record and consolidated operations in 2011, supported by an increase in cash generation due to the double-digit growth in traffic flow during the year.

This strong cash generation, combined with lower debt levels, has led to a reduction in EcoRodovias' leverage.

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Partially offsetting these positives is the firm's concentration in heavy truck traffic, which is exposed to the risk of reduction in a weakening economic environment. In addition, liquidity levels are less than adequate, according to the statement.

EcoRodovias operates five highway concessions covering more than 1,450km in São Paulo, Paraná and Rio Grande do Sul states, as well as two logistics terminals.

For the full report, in Portuguese, go to this link


S&P has also upgraded its debenture issuer rating of Brazilian highway concessionaire Ecovias dos Imigrantes to brAA+ from brAA-, the agency said in a separate statement.

The rating reflects the consistent improvement of Ecovias' financial indicators, supported by strong cash flow generated by an increase in traffic on the company's highways.

In addition, reduced debt has helped lower Ecovias' leverage level.

S&P expects the company to continue to present strong credit indicators, supported by its stable operations.

The full press release is available here, in Portugese.


Finally, ratings agency Fitch has affirmed its A-(cl) rating on bonds issued by Chilean highway concessionaire Rutas del Bosque, with a stable outlook, a press release from the agency reported.

The affirmation is based on the concessionaire's stable traffic volume during the last 12 months. The assigned rating also takes into account Rutas del Bosque's financial flexibility to pay debt.

Rutas del Bosque operates the Chillán-Collipulli stretch of Chile's main north-south highway, Ruta 5, in southern regions VIII and IX. The concessionaire is controlled by Colombian state power company ISA.

For the report, in Spanish, go to this link