Moody’s changes Red Electrica view

Moody's Investors Service said it changed to stable from positive the outlook of Red Eléctrica de España SAU and its financing affiliates.

At the same time, Moody's affirmed its Baa1 issuer rating and the Baa1/(P)Baa1 senior unsecured guaranteed debt ratings of its financing affiliates.

The agency said the action follows the announcement by parent company Red Eléctrica Corporación that it had agreed to acquire an 89.98% stake in Hispasat SA, and presentation of the group's updated strategic plan for 2018-22, which includes an investment plan of €6 billion.

The change in outlook reflects a view that as a result of the debt funded acquisition of Hispasat and the large investment plan for the 2018-22 period, the company is now unlikely to demonstrate financial metrics consistent with a higher rating over the medium term, the agency said.

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