S&P downgrades Avanza, debt

Standard & Poor's said it lowered its long-term corporate credit rating on Avanza Spain SAU to B from B+.

The outlook is stable.

At the same time, the agency lowered its issue ratings on the company's senior secured debt to B from B+. The recovery rating is unchanged at 3.

S&P also lowered its issue rating on Avanza's senior unsecured debt to CCC+ from B-. The recovery rating is unchanged at 6.

S&P said the downgrade reflects its lower expectations for Avanza's credit metrics over the next two years as a result of declining passenger numbers in the suburban and long-distance segments and lower earnings following the renewal of the Zaragora and Madrid concessions.

The agency now forecast the company's S&P-adjusted debt-to-EBITDA ratio at about 8 times by the end of 2014, up from about 6.5 times for the fiscal year ended Dec. 31, 2013.

The company's financial ratios are no longer at the stronger end of the range for a "highly leveraged" financial risk profile, and S&P said it therefore removed the one-notch upward adjustment to the rating for its comparable rating analysis modifier.

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