Standard & Poor’s rates as high the Metrotenerife’s financial solvency
The vice-president of the Island Government and President of Metrotenerife, Enrique Arriaga, reported that “the international agency of risk assessment in financial services, Standard & Poor’s, has awarded the Tenerife Tram operator with A type long-term and A-1 short-term, highlighting the prudent financial planning and the successful issuance of green bonds launched by the company”.
Metrotenerife, a company 100% owned by the Island Government and chaired by Enrique Arriaga, has once again been rated by Standard & Poor’s (S&P) with A type for the long term and A-1 type for the short term, with a negative outlook, in line with the rating of the Spanish Government.
Arriaga indicated that “according to the report published by this international agency, our company continues to be evaluated above the long-term rating in A+, which means a strong financial structure. In addition, the management of Metrotenerife is considered robust by its operating performance standards and the healthy EBITDA (financial indicator) achieved in recent years”.
Although the effects of the anti-covid-19 measures affected the economic situation of Metrotenerife, as in other European transport operators, its financial risk profile is strong by its good financial results and, in particular, by the launch of the Green Bonds issued by Metrotenerife last July.
Issuance of green bonds
In that regard, Standard & Poor’s has especially valued the issuance of Green Bonds, in line with the United Nations Sustainable Development Goals (SDGs), that Metrotenerife made in the capital markets worth 130 million Euros. With this financial operational, the interest expenditures will reduce from 5 million Euros per year to around 1, 6 million Euros. The international agency also highlights the ability of Metrotenerife to place a sustainable bond in markets with a large demand and a diversified order book.