Fitch Places Two OHL Sponsored Toll Road Debt Transactions on Negative Watch
May 29 2015 - 6:00PM
Business Wire
Fitch Ratings has placed the following two toll road
transactions sponsored by OHL Mexico on Rating Watch Negative:
Concesionaria Mexiquense (Conmex) and Grupo Autopistas Nacionales
(Gana).
The affected debt issuances are:
Conmex's debt:
--UDI1.6 billion notes due 2035 rated 'BBB' and 'AAA(mex)';
--UDI0.6 billion zero-coupon notes due 2046 rated 'BBB' and
'AAA(mex)';
--MXN6.5 billion Goldman Sachs loan due 2027 rated 'BBB' and
'AAA(mex)';
--UDI1.5 billion local market notes rated 'AAA(mex)'.
Gana's debt:
--UDI370 million local market notes rated 'AA+(mex)'.
The rating actions reflect the growing investigation of alleged
illegal activities involving OHL's Mexico operations (sponsor) and
concessions. The Ministry of Communications and Transportation
(SCT) has ordered the Ministry of Civil Service to conduct audits
on existing contracts with OHL Mexico.
The investigation is in its early stages and it will take some
time to get final resolution. In addition, Fitch believes the
ultimate outcome of the investigation and its impact on the
existing toll road transactions could vary significantly. In case
alleged OHL Mexico illegal activities are confirmed by authorities
and linked to the concessionaires, the credit quality of rated
obligations could be materially impacted, depending on the nature
and extent of the measures taken by authorities.
While at this stage in the investigation it is difficult to
predict a final resolution, Fitch believes that some adverse
outcomes are possible. Fitch will monitor the developments of the
investigation and update its ratings accordingly.
Additional information is available at
'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Rating Criteria for Infrastructure and Project Finance' (July
11, 2012);
--'Rating Criteria for Toll Roads, Bridges and Tunnels' (August
20, 2014).
Applicable Criteria
Rating Criteria for Infrastructure and Project Finance [682867 -
12-JUL-2012] (pub. 12 Jul 2012)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867
Rating Criteria for Toll Roads, Bridges and Tunnels [758708 -
20-AUG-2014] (pub. 20 Aug 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=758708
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https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985619
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https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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Fitch RatingsPrimary Analyst:Astra Castillo,
+52-81-8399-9100DirectorFitch Mexico S.A. de C.V.Prol. Alfonso
Reyes 2612Monterrey, Mexico 64920orSecondary Analyst:Alberto
Santos, +1-212-908-0714Senior DirectororCommittee
Chairperson:Glaucia Calp, +57-1-326-9999Senior DirectororMedia
Relations:Elizabeth Fogerty, New York, +1
212-908-0526elizabeth.fogerty@fitchratings.com