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Consorcio Transmantaro S.A. -- Moody's affirms Consorcio Transmantaro's Baa3 rating; outlook stable

Moody's Investors Service ("Moody's") affirmed today the Baa3 foreign currency senior unsecured rating assigned to Consorcio Transmantaro S.A. (CTM, Baa3 stable). The rating affirmation reflects our expectation that CTM's leverage metrics will remain relatively high as of 2020-2021 despite expected short-term improvements, in light of programmed capital expenses (capex) related to the projects awarded in October 2017, entitled 500kV Mantaro-Nueva Yanango-Carapongo transmission line and associated substations (COYA) and 500kV Nueva Yanango-Nueva Huanuco transmission line and associated substations (YANA), estimated at US$500 million in combination. CTM has a strong business profile, will low revenue risk.