Fitch Maintains Concesionaria Mexiquense on Rating Watch Negative

MONTERREY, Mexico--(BUSINESS WIRE)-- Fitch Ratings has maintained its Negative Rating Watch on the 'BBB' and 'AAA(mex)' ratings assigned to the following Concesionaria Mexiquense, S.A. de C.V. (Conmex)'s debt issuances:

--UDI1.6 billion notes due 2035;

--UDI0.6 billion notional amount zero-coupon notes due 2046;

--MX$6.5 billion Goldman Sachs loan due 2027.

Fitch also maintains a Negative Rating Watch on the 'AAA(mex)' rating on the UDI1.5 billion notes placed in the local market in August 2014.

The decision to maintain the Negative Watch assigned in May 2015 reflects that at present there has been no resolution of the audit conducted by the Mexican Securities and Exchange Commission (CNBV - its Spanish acronym) on OHL Mexico's operations(the company is Conmex's sponsor). Recent developments include the CNBV making public four findings related to OHL Mexico accounting records, with which the company's has formally expressed its disagreement and provided the CNBV with information to support such claims.

On the other hand, Conmex's credit fundamentals have performed in line with Fitch's base case expectations, supported by the asset's strength given its location and purpose of usage, strong credit metrics and solid debt structure.

According to public information, CNBV's expectation is that the audit process should be concluded by the first quarter of the year. The ultimate outcome of this audit could lead to the resolution of the Negative Watch.

Sources of information as identified in the applicable criteria specified below.

Additional information is available on www.fitchratings.com

Applicable Criteria

Rating Criteria for Infrastructure and Project Finance (pub. 28 Sep 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870967

Rating Criteria for Toll Roads, Bridges and Tunnels (pub. 29 Sep 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870170

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999871

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160223006676/en/

Fitch Ratings
Primary Analyst
Astra Castillo
Director
+52 81 8399 9100
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612
Monterrey, Mexico 64920
or
Secondary Analyst
Jorge Torres
Analyst
+52 81 8399 9100
or
Committee Chairperson
Glaucia Calp
Senior Director
+57 1 326 9999
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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