New York, December 26, 2012 -- Moody's Investors Service put the Ba2 rating of Inversiones Alsacia S.A. on review for downgrade. The action was triggered by the convergence of events in the second half of 2012 that have resulted in lower than projected revenues, higher than budgeted expenses and low liquidity available to pay debt service. The budgetary imbalance led to cash generation that covered debt service at a level just below 1.1x in August and will be sum sufficient for the February 2013 payment. The project has a $33 million cash funded reserve fund which it could tap if necessary. A stabilization of passenger validations alongside additional liquidity to be received in May as part of the compensation mechanism for low ridership built into the concession agreement should help improve the company's cash position to pay debt service in August 2013 and beyond. Over the next couple of months Moody's will review the companies' operating performance and assess the likelihood of the stabilization of financial metrics and take rating action accordingly.
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