S&P affirms Bina-Istra

Standard & Poor's said it affirmed its BBB- debt rating on the €210 million senior secured bonds due 2022 issued by Bina-Istra, dd.

The outlook is stable.

Bina-Istra is the concession company that is financing, designing, constructing, operating and maintaining phase 1B of the Istrian Motorway Project, a 145-kilometer tolled motorway on the Istrian Peninsula in the Republic of Croatia (foreign currency BBB/stable/A-3, local currency BBB+/stable/A-2).

Subphases 1B1 and 1B2-1 were opened to traffic on June 3, in line with a revised schedule, the agency said.

Lower insurance costs, interest income on the bond proceeds deposit and the abolition of withholding taxes on the coupon payment have produced excess cash of about €5.8 million, according to S&P, which added the rating is supported by the project economics, which rely on a relatively straightforward, tested financial-contribution mechanism that will substantially contribute to the project's cash flow by means of annual established payments from the Croatian government.

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