Moody's may cut Abengoa

Moody's Investors Service said it placed Abengoa SA's ratings under review for downgrade.

The agency said the ratings affected by this review are the company's corporate family rating, its probability of default rating and the senior unsecured notes ratings.

The agency said its review of Abengoa's ratings follows the recent downgrades of Spain's government bond rating, of the ratings for certain Spanish utilities and of 28 Spanish banks.

While Abengoa's Spanish operations are relatively small in terms of contribution to the group's revenues, the sovereign downgrade is a credit-negative development for Abengoa in light of the multiple channels of contagion that exist between sovereign and corporate issuers domiciled in that country, the agency said.

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