Moody's downgrades Abengoa

Moody's Investors Service said it downgraded Abengoa SA's corporate family rating and probability of default rating to B1 from Ba3.

Moody's also downgraded the rating on the group's senior unsecured notes to B1 from Ba3 with a loss given default assessment of 3.

The outlook is stable.

"Today's rating action reflects that, as a result of Abengoa's heavy investment programme, we no longer expect the group to be able to reduce its group net leverage, measured as net debt/EBITDA, to below 6x, which was one of the key criteria for the previous rating, but rather expect that it will increase from the level of 6.2x that was achieved in 2011," Moody's senior vice president and lead analyst for Abengoa Wolfgang Draack said in a news release.

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