Fitch downgrades Mexico's New International Airport bonds

Mexico City

Fitch Rating, the important risk rating agency lowered the rating of bonds that were issued during 2016 and 2017 on Friday, which were given by the Trust for the New Mexico International Airport.

The company explained through a statement that despite the fact that the debt that was issued for such financing of terminals in Texcoco will have a reduction of 1.8 billion dollars after the government offers to the holders of instruments, the current profile of said transaction corresponds to a more short.

However, it should also be noted that this could have a positive effect on leverage, Fitch considered even so, the credit fundamentals have remained constant with the classification given in the degree of investment.

The downside of these actions

During the statement, Fitch said that the already announced cancellation of the work in Texcoco greatly reduces the prospects for growth, and on the contrary possibly the implications in airport costs that already exist.

It also indicated that the outlook for the classification received is negative provided that it reflects uncertainty regarding current issues that are related to credit, as occurs with the lack of commercial strategies that are viable in the medium to long term, allowing in this way to address all the air transport needs that are being put to Mexico City as the entrance main to the country.

The possible future deterioration of the pricing power imposed on airports was argued, given that the Airport Use Fee it is destined to pay a financial obligation instead of contributing to a project to improve the capital.

There is also the possibility of a potential deterioration in asset quality due to a lack of investments. of capital that can be considered significant enough to sustain this project in the medium or long term without losses. On the other hand, the Mexico City Airport Group will receive an increase, going from negative to stable outlook.