Odinsa strengthens the trust of the market and its investors with an AA- Stable Outlook rating

  • Fitch Ratings, one of the three main risk rating agencies in the world, confirmed Odinsa’s Ordinary Bonds rating at AA-(col), with a Stable Outlook.
  • This fact continues to consolidate Grupo Argos’s concession company as a solid investment vehicle, since it is awarded to organizations that are highly likely to fulfill their obligations.

Medellín, July 9, 2019 – For the third year in a row, Fitch Ratings has awarded Odinsa, Grupo Argos’s concessions company, an AA-(Col) rating for its Ordinary Bonds totaling COP 400,000 million, and reaffirmed its Stable Outlook. 

“This ratification highlights the trust in the strategic road we have been following with discipline, and it becomes a seal of trust for our investors; in addition to an opportunity to continue strengthening our shares in Colombia’s securities market”, affirmed Mauricio Ossa, CEO of Odinsa.

The agency pointed to five key factors it considered in ratifying the rating: the presence of Grupo Argos as controlling shareholder, its balanced portfolio of concessions, its growing prospective cash flow, its high leverage and ample experience in the infrastructure sector.

According to the Fitch Ratings report, the ratings considered Odinsa’s connection with the credit profile of its parent company Grupo Argos (AAA(col)/Stable), which is based on the existence of strong operational and strategic links. Similarly, it included Odinsa’s experience in developing infrastructure projects in and out of Colombia, the gradual strengthening of the cash received from various concessions in which it participates, and its focus on long-term concessions with predictable income.

The AA- rating awarded to Odinsa is in the top category of debt issues, which feature a high level of certainty about their capacity to pay in the short term. In other words, these issues are very attractive for investors, who see Fitch’s opinion as an important reference for decision-making.

More about the key factors highlighted by Fitch Ratings:

The agency issued a positive assessment on the presence of Grupo Argos as the controlling shareholder (99.8%), which aligns Odinsa’s guidelines and policies with those of the Group, and which also upgraded its rating to AAA(Col), thus consolidating its support for Odinsa.

Balanced concessions portfolio: It involves the operation of long-term concessions with predictable income, which helps offset, to a certain extent, the volatility of the revenue and the risk profile associated with construction. 

In this regard, it highlights the strong performance displayed by Odinsa’s concessions in the first quarter of 2019, from which the company received revenue totaling COP 199,240 million and EBITDA of COP 141,802 million.

Experience: the accumulation of ample experience in managing, building and operating road and airport infrastructure projects With over 25 years in the sector, Odinsa has participated in the consolidation of strategic projects, and at this time, it holds 4 concessions in Colombia, 1 in Ecuador, 1 in Aruba and 2 in Dominican Republic.

Its main projects include:

  • El Dorado Airport in Colombia: in the first half of the year, this airport moved over 16 million passengers, reporting an increase of 18% in passengers paying the airport fee compared to the previous year. In addition, El Dorado has positioned itself as a green airport in the region, having received several awards, including the international Outstanding Sustainability Program award and the Carbon Footprint accreditation. See more
  • Conexión Pacífico 2 in Colombia: in the second half of the year it inaugurated the second functional unit (out of 5 roads), and to date it reports over 70% works completion. See works completion video
  • Mariscal Sucre Airport in Ecuador: positioned by Skytrax as the Best Airport in South America, completing 6 years of operations in 2019 during which time it has contributed to the country’s connectivity. See more
  • High leverage: the materialization of the many strategies undertaken by the company to strengthen its capital structure and cash flow generation could result in a ratings upgrade.

For additional information contact:

Viviana Arroyave, Director of Communications / varroyave@odinsa.com / +57 3176469218