Fitch reviews Infrax

Fitch Ratings said it placed Infrax Cvba's long-term issuer default rating and senior unsecured rating of A on rating watch negative.

Fitch said the negative watch follows Infrax's plans to merge with Eandis System Operator Cvba, and uncertainty regarding the possibly lower credit profile of the combined entity (which will be called Fluvius) than that of Infrax.

In the agency’s view, in order to proceed with the merger, Infrax will need to seek consent from the bondholders of its euro medium-term note program to waive some events of default.

Should bondholders disagree and Infrax continue with the merger process, Fitch said the company would probably need to refinance the bonds issued under the program, which could put some pressure on its liquidity position.

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