OREANDA-NEWS. Fitch Ratings has affirmed the ratings of the following two toll road transactions sponsored by OHL Mexico: Concesionaria Mexiquense, S.A. de C.V. (Conmex) and Grupo Autopistas Nacionales, S.A. (Gana). The ratings were removed from Rating Watch Negative and assigned a Stable Outlook. See the full list of ratings at the end of this release.

The decision to resolve the Rating Watch Negative assigned in May 2015 reflects the fact that the fines recently imposed on OHL Mexico, Conmex, OPI and some of OHL's senior employees resulting from the audit conducted by the Mexican Securities and Exchange Commission (CNBV - its Spanish acronym) on sponsor OHL Mexico will not have a negative impact on Conmex's and Gana's financial position or operations.

The action to affirm the ratings with a Stable Outlook considers that Conmex and Gana's credit fundamentals have performed in line with Fitch's base case expectations, supported by the assets' strength given their location and purpose of usage, strong credit metrics, and solid debt structures.

Following publication by the CNBV of four findings related to certain incorrect accounting records in October 2015, several fines amounting to MXN71.7 million were imposed on the sponsor, two of its subsidiaries and six individuals. Conmex alone was penalized MXN18.3 million, while Gana was not directly involved in the audit. The fines were already paid with resources from the sponsor and no amount will be charged to Conmex.

CNBV applied the above-mentioned fines but considered that no fraud or misconduct was involved, the actions had not resulted in any adverse effect to investors or the Mexican financial system, and that the companies and individuals had never been sanctioned by the CNBV before.

To Fitch's knowledge, the fines are the ultimate outcome of the CNBV audit process and there is no other investigation being conducted in connection with OHL Mexico's concessionaires.

The affected debt issuances are:

Conmex's debt:

--UDI1.6 billion notes due 2035 rated 'BBB' and 'AAA(mex)';
--UDI0.6 billion zero-coupon notes due 2046 rated 'BBB' and 'AAA(mex)';
--MXN6.5 billion Goldman Sachs loan due 2027 rated 'BBB' and 'AAA(mex)';
--UDI1.5 billion local market notes rated 'AAA(mex)'.

Gana's debt:

--UDI370 million local market notes rated 'AA+(mex)'.