S&P rates Abengoa notes B+

Standard & Poor's said it assigned a rating of B+ to the €250 million 8 7/8% senior notes due 2018 issued by financing vehicle Abengoa Finance SAU.

The rating is at the same level as the corporate credit rating on Abengoa Finance's parent, Abengoa SA.

The agency said it placed the rating on CreditWatch with negative implications, in line with the corporate credit rating on Abengoa.

The agency also said it assigned a recovery rating of 4 to the senior notes, indicating 30% to 50% expected recovery in a default.

The proceeds, along with the recently issued €400 million convertible notes due 2019, will be used principally to meet debt maturities in 2013 and 2014.

The senior notes are unsecured and share the same guarantee package as the existing senior notes, S&P said. The documentation for the new issuance is broadly similar to that for the existing rated debt, the agency said.

The recovery analysis reflects the valuation of Abengoa as a going concern, S&P said.

The valuation is underpinned by Abengoa's diversified portfolio of businesses, some of which benefit from good growth prospects and regulated environments, the agency said, and the group's strong reputation in the engineering and construction markets.

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