Fitch drops Illimani bond rating trend to negative

Fitch Ratings has changed its rating trend to negative from stable for bonds issued by Bolivian water concessionaire Aguas del Illimani because the government aims to revoke the utility contract, the agency's Bolivian office said. Fitch will finalize its Illimani bond rating once Bolivia's government makes official the concession cancellation. According to the original concession guidelines, Bolivia will have to pay Illimani the net value of its fixed assets upon contract cancellation. French water company Suez holds a 55.5% controlling share in Illimani, which served more than 230,000 residents in cities La Paz and El Alto. Bolivia's government decided to cancel the utility contract earlier this month after El Alto protestors caused citywide strikes and argued among other things that Illimani had not extended services to a sufficient number of residents.