Fitch Ratings has affirmed
The Outlook is Stable.
KEY RATING DRIVERS
Revenue Risk - Volume - Stronger
Mature, Diversified, Resilient Portfolio
Abertis has a large, diversified network of toll roads spanning nearly 8,000km of networks, mainly located in
Most assets are either national core networks with little competition, or assets strategically located in core areas. Traffic is predominantly made up of more stable light vehicles. The overall portfolio's 2007-2019 peak-to-trough traffic change of 6% is low compared to the peer average.
Revenue Risk - Price - Midrange
Inflation-Linked Tariffs
The concession frameworks under which Abertis operates are robust and generally track inflation or a large portion of it. In some jurisdictions the tariff systems also allow the recovery of implemented capex, partly detaching the group's cash flow generation from weak traffic performance. Generally, tariffs have increased steadily in the past.
Infrastructure Dev. & Renewal - Stronger
Flexible Plan, Experienced Operator
Abertis has extensive experience and expertise in delivering capex on its network. Some concessions also allow for the recovery of capex through the adjustment of toll rates.
Debt Structure - 1 - Midrange
Unsecured Bullet Debt
Abertis's debt is largely non-amortising and lacks material structural protections, which are typical of fully covenanted debt structures. Refinancing risk is mitigated by a well-diversified range of bullet maturities, demonstrated solid access to bond markets, and proactive debt management aimed at capitalising on favourable conditions to strengthen the capital structure.
Hybrid Bonds - Deep Subordination, 50% Equity Credit
The hybrid notes are unconditionally and irrevocably guaranteed by Abertis. The notes are deeply subordinated and rank senior only to Abertis Finance's share capital, while coupon payments can be deferred at the option of the issuer. These features are reflected in the notes' rating, which is two notches lower than Abertis's senior unsecured rating. We apply a 50% equity credit (EC) to the notes to reflects the hybrid's cumulative interest coupon, a feature that is more debt-like in nature.
For further information on Abertis's rating, see 'Fitch Rates Abertis's Hybrid Bonds 'BB+', published
Weak Mundys and Abertis Linkage
Fitch assesses the legal ring-fencing and access & control between Abertis and its weaker parent, Mundys S.p.A (consolidated credit profile: BB+/Stable), as 'open' and 'insulated', respectively, under its Parent and Subsidiary Linkage (PSL) Criteria. In particular, we believe the governance structure at Abertis adequately insulates it from Mundys at the current rating, ie. two notches above the 'BB+' rating of consolidated Mundys.
We believe Mundys' ability to extract cash from its stronger subsidiary is impaired by the presence of the co-shareholder (ACS) whose consent is required for relevant reserve matters including a change in the dividend policy, which also has to remain compliant with a minimum investment-grade rating of Abertis.
Financial Profile
Under the Fitch rating case (FRC) Abertis will progressively deleverage towards around 5.0x by end-2028, from 7.0x at end-2023. The trend shows some volatility during 2027, due to the expiration of few concessions leading to
PEER GROUP
Abertis shares a number of common features with
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Fitch-adjusted leverage above 6.2x by 2025 under the FRC
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Positive rating action is currently unlikely given the group's acquisitive strategy
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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