Outlook On Two Panamanian Infrastructure Entities Revised To Positive On Similar Sovereign Action

Stocks and Financial Services Press Releases Wednesday July 4, 2018 17:23
MEXICO CITY--4 Jul--S&P Global Ratings

MEXICO CITY (S&P Global Ratings) July 3, 2018--S&P Global Ratings revised the outlook on Autoridad del Canal de Panama (ACP) and on Aeropuerto Internacional de Tocumen's debt rating to positive from stable. We also affirmed our 'A-' ratings on ACP and our 'BBB' issue-level ratings on Tocumen.

The outlook revision on ACP reflects our view that it will continue to be rated at the maximum number of notches above the sovereign foreign currency rating due to ACP's intrinsic credit factors, sensitivity to country risk, and liquidity cushion under the sovereign stress tests that we run for an entity whose rating is above that on the sovereign. Therefore, while all other factors remain equal, a potential sovereign upgrade would cause the same rating action on ACP. We already disclosed our rationale of how many notches ACP could be rated above the sovereign in the most recent publishing report (please see "Autoridad del Canal de Panama 'A-' Ratings Affirmed On Expectations of Strong Financial Performance; Outlook Stable," dated July 26, 2017).

The outlook revision on Tocumen reflects a potential upgrade if we were to raise our ratings on Panama to 'BBB+'. Even if Tocumen's 'bbb' project stand-alone credit profile remains unchanged, we expect that after a sovereign rating improvement, and given the strong relationship from a qualitative standpoint with it, the rating on Tocumen will follow an identical pattern.

Finally, the conversion of the rating on Tocumen's $225 million amortizing senior notes due 2048 to final from preliminary follows our revision of the executed version of the documentation associated to the issuance. All characteristics included in our previous analysis remain in line with our expectations.


Latest Press Release

CyberScout To Provide Identity Theft Resolution To Lansfo Partnership Will Help SMEs Manage Global Cyber Risks Post GDPR

CyberScout is excited to announce a new partnership with Lansforsakringar, a group of customer-owned insurance companies that provides personal, commercial, pet and life insurance, as well as bank, life and pensions services throughout...

Photo Release: Indorama Ventures Supports the Stock Exchange of Thailands Sustainability Initiatives

To support the Stock Exchange of Thailand (SET)'s sustainability initiatives, Indorama Ventures PCL ("IVL") volunteered to educate the SET's employees on their "SET: October Green Fest" day to encourage the public to understand more about waste...

Leading Architectural Design Firms B+H and SAA Join Surbana Jurong Group

Surbana Jurong, one of the largest Asia-based urban and infrastructure development consultancies, is set to form one of the largest architectural groupings in the world with the joining of two leading architectural firms, Canadian-headquartered B+H and...

SET welcomes consumer products conglomerate Osotspa on October 17

The Stock Exchange of Thailand (SET) will list Osotspa pcl, a leading consumer goods manufacturer and distributor in Thailand and ASEAN, on October 17, under the ticker symbol "OSP". The company has a market capitalization at its initial public offering...

KTC joins hands with Aetna in providing members special privileges for health and travel insurance purchases.

"KTC" or Krungthai Card Public Company Limited, by Mr. Suwat Tepprechasakul, Vice President - Credit Card Business, partners with Mr. Kachen Kungsadannatee, Sales & Marketing Director, Aetna Health Insurance (Thailand) Public Company Limited, in...

Related Topics