Fitch Affs at 'BBB' Corredor Sur Trust Series A Notes; Withdraws Unissued Series...

Fitch Affs at 'BBB' Corredor Sur Trust Series A Notes; Withdraws Unissued Series B Notes Rating

NEW YORK--(Business Wire)--
Fitch Ratings affirms the 'BBB' rating on BG Trust, Inc. (Panama,
Corredor Sur Trust) $150 million of outstanding parity Series A Notes.
The Rating Outlook is Stable. In addition, Fitch withdraws the rating
assigned to the unissued $125 million Series B Notes.

Series B Notes issuance required the consent of current
bondholders, which was not given. The structure precludes additional
leverage without changes to the indenture. The bonds are secured by
toll revenue collected on Corredor Sur pursuant to a concession
granted to ICA Panama by the Panamanian government.

The 'BBB' rating reflects the strong economic growth of the
service area, demographic fundamentals of a mature toll corridor that
connects major current residential and economic centers, considerable
congestion on the competing free-road network, and a stable financial
profile even under stress scenarios. The senior debt service coverage
ratio was 1.46 times (x) in 2005, 1.75x in 2006, 2.44x in 2007, and
2.80x in the first six months of 2008, above Fitch's base-case
projections.

Traffic on Corredor Sur has continued to grow. Accumulated traffic
at the end of second-quarter 2008 increased by 19.5% to 15.7 million
vehicles from 13.2 million vehicles in the same period in 2007. Toll
revenue at the end of second-quarter 2008 is up 36.9% to US$18.6
million from US$13.6 million in 2007.

When Fitch last reviewed the credit in November 2007, there was a
concern that political influences might continue to delay toll
increases. However, the increase did take place, 10% for cars and 26%
for trucks. The bus toll rate remained unchanged. Average toll per
transaction increased 14.4% to US$1.13 in second-quarter 2008 from
US$1.03 in same period in 2007.

As scheduled in the major maintenance plan, in 2007 repairs and
corrosion protection work for exposed piles (piers) took place on the
2-kilometer viaduct section of Corredor Sur. The Independent Engineer
(IE) is scheduled to present an updated assessment of the road in
2009. While the most recent IE's assessment took place in 2007, the
viaduct was under repair so no opinion was presented on this issue.
Management has represented that the work is completed and the Ministry
of Public Works has given its approval.

Corredor Sur is approximately 20 kilometers long and connects the
city's international airport and suburban population with the center
of Panama City. ICA Panama was formed for the purpose of operating the
toll road concession and has no other significant commercial
activities. ICA Panama holds 100% of the concession rights through an
administrative concession agreement with the Panamanian government.
Maxipista de Panama, S.A. operates the road on behalf of the
concessionaire. Both ICA Panama and Maxipista are 100% owned by
ICATECH.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Azul del Villar, +1-212-908-0684
Mike McDermott, +1-212-908-0605
Media Relations:
Brian Bertsch, +1-212-908-0549

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