S&P assigns BBB- rating to Puerto Rican tollroad note issuance

Standard & Poor's has assigned a BBB- rating to highway concessionaire Autopistas Metropolitanas de Puerto Rico's US$345mn senior note issuance, according to a report from the ratings agency. The rating, with a stable outlook, is attributed to "the long operating history of the toll road with steady revenue growth, expectations of stable DSCRs, and an experienced operator," stated the report. Abertis Infraestructuras, GS International Partners II and GS Global Infrastructure Partners II took over the tollroad concession in 2011. The 40-year concession covers the 83.7km PR-22 highway that runs along the northern coast of Puerto Rico, from San Juan to Hatillo and the 6.4km PR-5 highway between San Juan and Bayamon. Key ratings drivers include the long operating history, limited competing alternatives and strong traffic levels. On the downside, "the recession was especially severe in Puerto Rico and it is still recovering, making near-term traffic and revenue projections uncertain." In addition, the debt service schedule escalates and is uneven, "sculpted to accommodate the projected lumpy major maintenance needs that will require constant revenue growth through traffic or rate increases throughout the debt's term."