Fitch lowers Ellaktor

Fitch Ratings said it downgraded Ellaktor SA's long-term issuer default rating and Ellaktor Value plc's €670 million of notes to B+ from BB.

“The downgrades reflect our view that Ellaktor's ability to achieve the leverage guidance of around 3x in 2023 has reduced. Unexpected cash leakages from the restricted group to support the construction business represent the loosening of a prudent financial policy and weakening of our assumptions about the strength of the ring-fence. Lower economic growth and Covid-19 disruption to the company's concession business support the downgrade. The company's solid liquidity position and the absence of immediate refinancing needs are positive for the rating,” said Fitch in a press release.

The outlooks are negative.

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