Outlook 2015: 'Solid' prospects for LatAm infra

Credit fundamentals for Latin American infrastructure – across a number of sectors – are expected to remain stable in 2015 despite divergent macroeconomic performance within the region, Fitch Ratings said in a recent ratings report.

“In general, financial metrics are likely to remain commensurate within assigned ratings,” Fitch senior director Glaucia Calp said in a statement.

While traffic volume may not be consistent throughout all Latin American countries – Brazil and Chile are expected to see a deceleration, while Mexico and Colombia can expect stronger revenue performance due to “brighter economic prospects” – toll road performance is expected to remain stable overall due to mature roads, favourable demographics and strategic locations, Fitch said.

The outlook is the same for airports, “underpinned by rising traffic volumes, healthy non-aeronautical revenues and controlled costs, despite the cooling down in some major markets’ domestic demand.”

Assigned ratings for power projects are also expected to remain unchanged since they receive predictable capacity revenues and have limited or no volume exposure, according to Fitch.