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August 12, 2011 at 17:02 PM EDT
Fitch Affirms Peruvian CRPAO Transactions

Fitch Ratings has affirmed the ratings assigned to the transactions backed by Peruvian CRPAO transactions related to the IIRSA Sur and IIRSA Norte toll-roads. The Outlook for the ratings remains Positive.

The rating actions are as follows:

IIRSA Norte Finance Limited

--Series 2006-1 affirmed at 'BBB'; Outlook Positive

Interoceanica IV Finance Limited (InterSur)

--Series 2007-1 affirmed at 'BBB-'; Outlook Positive;

--Series 2007-2 affirmed at 'BBB-'; Outlook Positive.

Peru Enhanced Pass-Through Finance Limited (IIRSA Sur)

--Class A-1 affirmed at 'BBB-'; Outlook Positive;

--Class A-2 affirmed at 'BBB-'; Outlook Positive.

Interoceanica V Finance Ltd. (IIRSA Sur Tramo V)

--Series 2008-1 affirmed at 'BBB-'; Outlook Positive;

--Series 2008-2 affirmed at 'BBB-'; Outlook Positive;

--Series 2008-3 affirmed at 'BBB-'; Outlook Positive.

The affirmation of the ratings follows the affirmation of the long-term foreign currency Issuer Default Rating (IDR) of Peru at 'BBB-'; Positive Outlook by Fitch on July 27, 2011.

These transactions are securitizations of CRPAOs (Certificados de Reconocimiento de Pago Annual de Obras), certificates granted by the Government of Peru (GOP)to concessionaires in compensation for construction progress on the Interoceanica Sur and Interoceanica Norte roads. The CRPAOs are sold to the trusts as they are generated. The GOP pays the certificate holders in U.S. dollars. Once generated, CRPAOs are not subject to any condition or performance obligation relating to the concession agreement. Note holders are not exposed to construction risk.

Cash flow to maintain timely debt service on the transaction depends on the sovereign's continued payment on all issued CRPAOs. CRPAOs are backed by the full faith and credit of the sovereign. While legally different from public debt, Fitch views the difference in probability of honoring one obligation over the other as immaterial. The rationale behind the rating of the notes is similar to a government pass-through.

IIRSA Norte Finance Limited's 'BBB' rating also reflects the enhanced recovery in the event of default derived from the USD$60 million PG (partial guarantee) provided by the IDB (Inter-American Development Bank). At all times, the fixed dollar amount covers more than 20% of the outstanding balance of the notes.

The ratings assigned to these transactions reflect Fitch's 'Global Structured Finance Rating Criteria.' The rating assigned to IIRSA Norte Finance Limited also reflects the principles under Fitch's 'Criteria for Partial-Credit Guarantees in Emerging Markets.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011)

--'Criteria for Partial Credit Guarantees in Emerging Markets' (Apr. 19, 2011)

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Criteria for Partial-Credit Guarantees in Emerging Markets

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=615466

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts:

Fitch Ratings
Primary Analyst
Bernardo Costa, +1-312-606-3315
Director
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Cristina Madero, +1-312-368-2080
Analyst
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations:
Cindy Stoller, +1-212-908-0526
Email: cindy.stoller@fitchratings.com
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