Fitch Affirms ENA Master Trust at 'BBB'; Outlook Remains Negative.

ENPNewswire-November 8, 2021--Fitch Affirms ENA Master Trust at 'BBB'; Outlook Remains Negative

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Release date- 05112021 - Fitch Ratings has affirmed the 'BBB' rating on the fixed-rate USD400 million senior secured notes of ENA Master Trust due in 2048.

The Rating Outlook remains Negative. Fitch has also assessed the Standalone Credit Profile (SCP) of the transaction at 'bbb'. The notes are supported by the cash flow generation of the Panama City Corridor Sur and Corridor Este toll-roads.

RATING RATIONALE

The rating reflects the risk related to the operation of two toll roads, one with long track record and other that is still going through a ramp-up phase in Panama's capital city. Despite the projects' contractual ability to adjust tolls according to inflation, tolls have not been increased in most recent years; therefore, Fitch assumes that tolls will remain unchanged over the life of the notes. The ratings also reflect a standard debt structure that is senior, fully amortizing, with adequate structural features and covenant package.

The notes are rated under our 'Government-Related Entities Rating Criteria,' which factors Fitch's strong assessment for the link between the Panamanian government and the project and moderate assessment for the perceived incentive of government support when needed.

Fitch's rating case minimum and average (DSCR) is 2.5x (in 2039) and 2.8x, respectively. These metrics are high for the SCP's rating category, according to the applicable criteria. However, the ratings are constrained at one notch above Panama's sovereign rating (BBB-/Negative) given the linkages between ENA Master Trust and the Panamanian government. The international rating one notch above the sovereign is supported by the project's resilience to severe stresses beyond those observed under adverse macroeconomic conditions and by the existence of robust contractual ring-fencing provisions that limit cash flow transfers to the Government of Panama.

The Negative Rating Outlook reflects the links between ENA Master Trust and the Panamanian government, where a downgrade of the Issuer Default Rating of Panama would result in a downgrade of the rating of ENA Master Trust.

KEY RATING DRIVERS

Moderate Volume Risk [Revenue Risk-Volume: Midrange]: The two corridors represent important links for commuters and commercial traffic in the capital city of Panama. Given the recent infrastructure changes in the...

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