OREANDA-NEWS. Fitch Ratings has affirmed the 'BBB-' ratings assigned to Fermaca Enterprises, S. de R.L. de C.V. (Fermaca) and Abengoa Transmision Sur S.A. (ATS) notes. The Rating Outlook for both remains Stable. Fitch's review follows the recent publication of its revised 'Rating Criteria for Availability-Based Projects' on Oct. 14, 2015.

Under the new criteria, Fitch evaluates a project's overall cost risk utilizing three sub-factors: scope risk, cost predictability and cost volatility/structural protections. The ratings also take into account realistic outside cost (ROC) estimates, indicative debt service coverage ratios (DSCR) thresholds and breakeven analysis. The ratings further reflect evaluation of revenue risk and debt structure.

Fitch assigned an overall cost score of 'Midrange' to both, Fermaca and ATS, mainly due to: i) projected low life cycle costs relative to revenue, ii) high level cost analysis from technical advisor, iii) operators with significant experience, and iv) project's costs comparable to similar projects.

Fermaca's rating affirmation at 'BBB-' reflects Fitch's Midrange assessment of the project's exposure to cost risk under the revised availability criteria, with an all cost breakeven of 155%, which translates into a ROC multiple of over 18x. The overall Midrange cost risk assessment is derived from Midrange assessments of scope risk and a Stronger assessment of cost predictability and cost volatility & structural protections. The project benefits from a stable DSCR profile that is consistent with the 'BBB-' level under the revised criteria.

ATS's rating affirmation reflects Fitch's Midrange assessment of the project's exposure to cost risk under Fitch's revised availability criteria with an all cost breakeven of 150%, which translates into a ROC multiple of over 20x. The overall Midrange cost risk assessment is derived from Midrange assessments of scope risk and cost predictability and a Stronger assessment for cost volatility & structural protections. Despite financial metrics that indicate the potential to be rated higher, Fitch has kept the rating unchanged until the impact of Abengoa, S.A. filing for protection under the Spanish Insolvency Law on the project is more clear.

RATING SENSITIVITIES
These rating actions purely reflect the update to Fitch's rating criteria. As such the rating sensitivities remain unchanged from Fitch's previous publications. For additional details, see:

--Fitch Affirms Fermaca Enterprises' Sr. Debt at 'BBB-'; Outlook Stable', dated April 10 2015;
--Fitch Affirms Abengoa Transmission Sur S.A.'s Sr Secured Notes 'BBB-'; Outlook Stable, dated April 14 2015.