Fitch lowers Catchment Tay view to stable

Fitch Ratings said it revised the outlook on Catchment Tay Ltd.’s outstanding £74.3 million senior secured notes due 2028 to stable from positive and affirmed the rating at BBB-.

The outlook revision reflects the on-going delays of the formal implementation of the revised tariff-payment mechanism, Fitch said.

Based on the revised payment framework, the agency said it considers the credit quality of the underlying asset to be consistent with a higher rating, but believes there are risks around the ability and willingness of the project parties to agree upon a formal update of the tariff.

The BBB- rating on the notes is supported by the project’s strong financial and operational performance, stable revenue profile, low exposure to volume risk and straightforward debt structure, Fitch said.

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