NEW YORK, Feb. 5 /PRNewswire/ -- Standard & Poor's today withdrew
its triple-'B'-minus corporate credit rating on Chile-based Collipulli-Temuco
Sociedad Concesionaria S.A. (Collipulli-Temuco) at the company's request.
Under a Chilean concession program that has been in place since 1991, the
Chilean Ministry of Public Works (MOP) has awarded five segments of the
southern portion of Ruta 5 to private consortiums. This project, the
Collipulli-Temuco highway concession, was awarded to Cintra in September 1998,
under a 25-year concession from the MOP, which expires in March 2024. The
project is a 144-kilometer (90 mile) toll road, located 574 kilometers
(394 miles) south of Santiago, Chile in Region IX of Araucania. The concession
begins in Collipulli and ends just south of Temuco, the major city in the
region.
The main rating issues reflected revenues highly dependent on truck and
commercial traffic, which is heavily dependent on national and economic
trends; a low income service area; and somewhat aggressive near-term
commercial and truck traffic growth. These weaknesses were somewhat offset by
an already existing toll road with a substantial history of usage, which is
the major north/south link south of the city of Santiago; limited, if any,
free alternative routes; and simple and relatively straightforward
construction with future capital improvements funded from excess net operating
income.
SOURCE Standard & Poor's
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CONTACT:
Lidia Polakovic of Standard & Poor's Ratings
Services, Buenos Aires, +54-114-891-2130
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