S&P rates Ellaktor notes B

S&P said it assigned a B rating to Ellaktor SA’s planned offer of €600 million unsecured notes.

Proceeds will be used to help refinance a portion of the company’s capital structure.

“We believe Ellaktor’s proposed refinancing improves the company’s liquidity and debt maturity profile, given the notes’ 2024 maturity. We think the refinancing, together with the recent restructuring initiatives to strengthen corporate governance and financial policy, should support indebtedness control. In our base case, we forecast that Ellaktor’s ratios will improve over 2020-2021 on the back of higher cash flow generation in concessions,” the agency said in a press release.

S&P affirmed Ellaktor’s B rating and maintained the stable outlook.

“The affirmation reflects Ellaktor’s continued exposure to the weak profitability and losses in the construction segment and the significant capital expenditure (capex) to perform in relation to the wind park portfolio,” the agency said.

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