Moody's downgrades Abengoa

Moody's Investors Service said it downgraded Abengoa SA's corporate family rating and probability of default rating to B2 and B2-PD from B1 and B1-PD respectively.

Moody's also downgraded the ratings on Abengoa's senior unsecured notes to B2 from B1 issued by Abengoa SA and Abengoa Finance SAU.

The outlook was changed to stable.

Moody's said the action was prompted by Abengoa's high leverage in fiscal year 2012 both on a consolidated level including non-recourse debt related to its concession activities (Moody's adjusted net debt/EBITDA of 9.7x) and based on reported corporate gross debt (reported gross debt/EBITDA 6.1x) as well as the reduced expectations of only slow deleveraging over the next 12 to 18 months due to weaker than previously expected EBITDA generation in 2013.

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