Moody's ups SCL bond rating

Moody's Investors Service has upgraded the public underlying rating of the outstanding senior secured debt of Chilean capital Santiago's international airport concessionaire SCL to B3 from Caa1, Moody's announced The rating remains under review for possible further upgrade, said the release, adding that the bonds are insured by MBIA and remain Aaa rated based upon the financial strength of the insurance company. The upgrade reflects improvements in passenger traffic and financial results, said Moody's, adding that SCL's debt ratings have been put under review for possible further upgrade reflecting the potential for improvements in the company's financial and liquidity position. Earlier this week, SCL and the country's public works ministry inked an income distribution mechanism (MDI) agreement, under which - in general terms - the government will insure SCL revenue against a sudden drop in passenger flows in return for a premium paid via public works construction. The MDI will represent a maximum outlay of US$21mn on additional works that will include expanding the plane staging area by 40,000 cu. m, the purchase of x-ray machines for the cargo area, and improving the parking lot and pedestrian accesses. As part of the MDI, SCL's 15-year concession that began in 1997 was extended six and a half years. In February, local construction and engineering firm Besalco began a second runway at the airport, after submitting the lowest bid - 25.9bn pesos (US$47.4mn) - in November last year. The 3.8km-long, 45m-wide runway should be ready next year and will increase the international airport's capacity by 30%. Some six million passengers/yr use the airport. SCL shareholders are Agunsa (47%), ACS (14.8%), FCC (14.8%), Sabco Administradora de Fondos de Inversion (13.4%) and YVR Airport Services (10%). For Moody's report, paste the following link in your browser: www.bnamericas.com/rc_search_detail.xsql?id_documento=53477&Tx_idioma=I