Moody's cuts ENA ratings

Moody's Investors Service said it downgraded the senior implied rating of ENA Infraestructuras SA (formerly Empresa Nacional de Autopistas SA) to Caa1 from Ba1 and the long-term issuer rating of ENA to B3 from Ba2. Moody's also downgraded the senior unsecured debt ratings of Autopistas del Atlantico, Concesionaria Espanola SA to B1 from Ba1 and affirmed the Not-Prime short-term issuer rating of Autopista Concesionaria Astur-Leonesa SA.

The rated debt of Autopistas del Atlantico, Concesionaria Espanola includes €30.05 million 5% bonds due 2007, €72.12 million 3.9% bonds due 2008, €66.11 million 4.19% bonds due 2011, €180.30 million 4.33% bonds due 2012, all rated B1.

The outlook is stable.

The Caa1 senior implied rating of ENA reflects the substantial debt burden of the ENA group following its acquisition by a consortium led by unrated Sacyr Vallehermoso SA.

ENA's debt burden prior to the privatization was already high relative to the earnings generation of the group (debt of €1.1 billion in the year ended Dec. 31, 2002 against operating income of €157.4 million). The ENA purchase price of €1.622 billion was financed predominantly by debt in a holding company structure sitting above ENA; Moody's said it believes that the majority of the debt service obligations of that debt will be met from the ENA group's cash flow.

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