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June 23 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has issued a New Issue report for Abengoa Transmision Sur S.A.'s (ATS) $432 million series 2014-1 senior secured notes. Fitch issued a press release for the notes on April 21, 2014, assigning a 'BBB-' rating. The Rating Outlook is Stable.
ATS consists of three sequential 500kV transmission lines and three new substations, extending along 883 km (approximately 550 miles). The transmission line connects the Chilca substation, located nearly 60 km (approximately 37 miles) south of Lima to the Poroma, Ocona, and Montalvo substations in southern Peru, along with two short 220kV transmission lines linking to existing substations.
The project operates under a 30-year concession agreement, granted by the government of Peru through the Ministry of Energy and Mines (MINEM). The concession agreement was granted on April 30, 2010, executed on July 22, 2010 (the concession date), and commenced on Jan.17, 2014 (commercial operation date).
Abengoa S.A. (Abengoa), rated 'B+'/ Outlook Stable by Fitch, is the primary sponsor of the transaction through two of its subsidiaries: Abengoa Transmision Norte S.A. and Abengoa Concessions Peru S.A. who together own 61.1% of ATS. The Spanish development bank, COFIDES, is the other project sponsor, holding the remaining 38.9% of the equity through its fund for foreign investment (FIEX).
Link to Fitch Ratings' Report: Abengoa Transmision Sur S.A. (Power Transmission Line Project)