Moody's Updates Rating Methodology for Privately Managed Toll Road Industry.
Summary: Moody's Investors Service has published an updated Rating Methodology report
Moody's Investors Service has published an updated Rating Methodology report explaining its global approach for assessing
credit risk for companies in the privately managed toll roads industry.
This rating methodology replaces the Operational Toll Roads Methodology
published in December 2006.
The report, "Privately Managed Toll Roads" is now available on
www.moodys.com. Moody's subscribers can access this report via the link
provided at the end of this press release.
While Moody's updated methodology reflects many of the same core
principles as the 2006 methodology, this revised document incorporates
refinements in the rating agency's analysis that better reflect the
evolution of credit fundamentals of the industry and the rated universe.
No rating changes will result from the publication of this rating
Moody's report includes a detailed rating grid and illustrative examples
that compare the mapping of rated companies against the factors in the
grid. The grid is a reference tool that can be used to approximate credit
profiles within the privately managed toll roads sector in most cases.
The grid provides summarized guidance for the factors that are generally
most important in assigning ratings to companies in the privately managed
toll roads sector. However, the grid is a summary that does not include
every rating consideration.
The grid contains five factors that are important in Moody's assessments
for ratings in the toll road sector: Asset Type and Service Area,
Traffic Profile and Performance Trends, Concession and Regulatory
Framework, Financial Policy, and Coverage and Leverage. The sixth factor
is a notching adjustment for structural considerations.
The weights shown for each factor in the grid represent an approximation
of their importance for rating decisions, but actual importance may vary
substantially. In addition, the illustrative mapping examples in the
revised document typically use historical financial metrics while ratings
are based on our forward-looking expectations. As a result, Moody's does
not expect the grid-indicated rating to match the actual rating of each
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|Publication:||EMBIN (Emerging Markets Business Information News)|
|Date:||Jun 1, 2014|
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