International ratings agency Moody's believes Colombian transmission company ISA's recent acquisition of highway concessionaire Cintra Chile is "not without risks," the agency announced in a research note.
Moody's assigned the state-owned firm Baa3 local and foreign currency ratings with a stable outlook, acknowledging the firm's low business risk profile based on its position as Colombia's leading transmission company.
Moody's, however, cautioned that "the company's expansion into the road business is not without risks given the fact that ISA lacks previous relevant experience in this sector."
ISA completed the acquisition of a 60% share in Cintra for US$290mn in September.
Ratings agency Fitch assigned ISA a BBB- foreign and local currency investment rating earlier this week. ISA heralded the classification as an important step towards its goal of floating on international markets.