Fitch: No Rating Impact from Red de Carreteras de Occidente's New Line of Credit

MONTERREY, Mexico--()--Fitch Ratings has reviewed the terms and conditions of the credit line that Red de Carreteras de Occidente, S.A.B. de C.V. (RCO) contracted for with Banco Inbursa, S.A. Institucion de Banca Multiple, Grupo Financiero Inbursa (Inbursa), as part of its refinancing plan. Fitch has determined that the inclusion of the credit line has no impact on the ratings of the following Fitch-rated RCO issuances:

-- RCO 12 'AAA(mex)'; Stable Outlook;

-- RCO 12U 'AAA(mex)'; Stable Outlook;

-- International bonds 'BBB-'; Stable Outlook.

The MXN4.6 billion line of credit matures in 2029 and accrues interest at a fixed rate. Amortizations will be made on a biannual basis and a debt service reserve fund will be maintained for an equivalent of the next six months of debt service. The proceeds of this credit line will be used to partially prepay the original Acquisition Loan due 2018. Once the prepayment is made, RCO estimates the Acquisition Loan's balance will decrease to MXN3,339 million.

The inclusion of this new line of credit allows RCO to refinance at a slightly lower rate than expected by Fitch and significantly reduce refinancing risk, as now only 17.7% of the MXN18,871 million that was held as debt under the Acquisition Loan by the end of 2012 would need to be refinanced during the next four years. Fitch believes it is reasonable to expect that RCO can successfully complete its total refinancing program.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

-- 'Rating Criteria for Infrastructure and Project Finance' (July 12, 2012);

-- 'Rating Criteria for Toll Roads, Bridges, and Tunnels' (Oct. 16, 2013).

Applicable Criteria and Related Research:

Rating Criteria for Toll Roads, Bridges and Tunnels
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720736

Rating Criteria for Infrastructure and Project Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Astra Castillo, +52 (55) 5955-1611
Director
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612, Monterrey, N.L.
or
Jorge Torres, +52 (81) 8399-9139
Analyst
or
Media Relations, New York
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Astra Castillo, +52 (55) 5955-1611
Director
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612, Monterrey, N.L.
or
Jorge Torres, +52 (81) 8399-9139
Analyst
or
Media Relations, New York
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com