Moody’s reviews Aldesa for upgrade

Moody's Investors Service said it placed on review for upgrade the Caa1 corporate family rating and the Caa1-PD probability of default rating of Grupo Aldesa SA. Concurrently, Moody's placed on review for upgrade the Caa1 rating on the €250 million senior secured notes due April 2021, sold by Aldesa Financial Services SA, a direct subsidiary of the group.

“The review follows Aldesa's announcement on 26 December 2019 that it has signed an agreement with CRCC International Investment Group (CRCCII), a wholly-owned subsidiary of China Railway Construction Corporation Limited (CRCC, A3 stable), according to which CRCC will acquire a 75% stake in Aldesa,” said Goetz Grossmann, Moody's lead analyst for Aldesa, in a press release. “The review for upgrade recognizes that Aldesa's credit and liquidity profile will strengthen following its integration into CRCC.”

The rating action indicates Moody's assessment Aldesa's credit profile will improve, and especially with regards to its liquidity profile, following the acquisition, when the group will become part of CRCC, one of the largest integrated construction groups worldwide with total revenue of more than $110 billion in 2018. The credit profile of the combined group will be materially stronger than that of Aldesa on a standalone basis, considering its large scale, strong market position with a presence in nearly 100 countries globally, solid operational capabilities and long operating track record in the construction industry of over 70 years, the agency said.

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