Fitch puts Grupo Aldesa on watch

Fitch Ratings said it placed Grupo Aldesa SA’s long-term issuer default rating of B- on rating watch positive. Concurrently, Fitch placed the senior secured rating of the wholly owned subsidiary Aldesa Financial Services SA of B- on RWP.

The rating action follows the announcement of Aldesa’s investment agreement with CRCC International Investment Group, a wholly owned subsidiary of China Railway Construction Corporation Ltd. CRCC will acquire a 75% stake in Aldesa while existing shareholders will retain the remaining 25% of the share capital. The transaction will include about a €250 million capital increase, which is sufficient to repay Aldesa’s €245 million Luxembourg bond.

The RWP reflects Fitch’s expectation the acquisition and capital increase will strengthen Aldesa’s credit profile, leading to a stronger liquidity position and financial structure for the company, by removing refinancing risk, the agency said.

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