S&P changes Ence Energia to negative

Standard & Poor's said it revised its outlook on Ence Energia y Celulosa to negative from stable.

At the same time, the agency affirmed its BB long-term corporate credit rating on the group.

In addition, S&P affirmed its BB issue ratings on the €250 million senior secured notes. The recovery rating on the senior secured debt is unchanged at 3, indicating an expectation of meaningful (50%-70%) recovery for creditors in the event of a payment default.

S&P said the outlook revision primarily reflects its expectations of an increasingly difficult operating environment for Ence following the additional taxes implemented on renewable energy and the proposed amendments in energy regulation in Spain.

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