OREANDA-NEWS. Fitch Ratings says its rating outlook for EMEA transport infrastructure in 2H16 is stable, underpinned by ongoing eurozone economic recovery. However, the recent UK vote to leave the European Union reduces the medium-term visibility on UK assets. Other EMEA assets have flexibility to absorb moderate short-term deterioration in their operating environment. 70% of the ratings in Fitch's EMEA transport portfolio are on Stable Outlook.

We expect moderate traffic growth across Fitch's EMEA toll road and airport portfolios. Some of the assets that were exposed to weakened economies, such as Spain and Portugal, are rebounding, while others, including Italy, are stabilising. We remain cautious about cargo volume growth for 2016, amid sluggish year to date world export volumes.

Following the outcome of the EU referendum in UK, the near-term market volatility could delay issuers' plans to tap capital markets. Brexit could also delay the financial recovery of some European airlines, as lower profitability could offset gains from low fuel prices.