3 months ago
15
International ratings Agency, Fitch, has assessed TransJamaican Highway Limited’s announced acquisition of Highway 2000 Phase 1-C as credit neutral.
In a release on Tuesday, Fitch describes the risk of potential operational or financial disruptions to TJH’s currently rated structure as largely mitigated.
This is based on a belief that no changes to current notes’ documents are expected and a separate entity will operate the Phase 1C concession.
Additionally, funding will be made with excess cash flow from the current debt structure.
The acquisition cost is estimated to be approximately US$20million.
This will be funded with proceeds from the shareholders’ distribution account.
Additionally, the TJH has stated there will be no changes to the bondholders’ agreement, and a new separate company, under the Unrestricted Subsidiary form, will operate the concession.
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