S&P puts Vinci on negative watch

Standard & Poor's said it placed its BBB+ long-term corporate credit and senior unsecured debt ratings on Vinci SA on CreditWatch with negative implications and affirmed its A-2 short term corporate credit rating. The placement follows Vinci's fully debt-financed acquisition of Eiffage's 17% stake in Vinci's 65%-owned French toll road operator Cofiroute (BBB+/negative watch/A-2).

The CreditWatch reflects S&P's view that Vinci is pursuing an aggressive acquisition strategy. This could result in a rating downgrade of up to one notch, to BBB for the long-term ratings, the agency said. The €760 million debt-financed transaction and subsequent higher leverage for Vinci weighs on the group's financial profile, S&P said, which is weak for the rating.

The ratings reflect Vinci's strong market positions in a wide variety of concession and construction activities, the agency said, and the considerable contribution from its stable and profitable concession businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.