Moody’s warned that it might lower the rating of Abengoa – Investing.com Spain

MADRID (Reuters) – After finishing the week with a loss of almost half of its market capitalization, Abengoa (MADRID received on Friday a notice of the rating agency Moody’s on a review for a possible rating downgrade.

The agency said the revision reflects the high leverage levels reported in the first half of the year, well above the estimates of the current rating of “B2″ that gives the company.

Also planned investments mentioned above expectations with a “significant negative impact” on cash flow and announced the “weakening of the liquidity situation of the company.”

In this regard, it stresses that the company plans to increase capital by 650 million euros and sell about 500 million euros in assets could help leverage ratios and adequate liquidity.

At the same time, Moody’s analysts explain that the plan of deleveraging is subject to risks and Abengoa may face risks in their business model in the field of project financing.

“Failure when executing the plan scheduled in time would result in a lowering of the credit rating of the company, “Moody’s said in a statement.

On Friday, coinciding with the introduction of its first half results, Abengoa substantially lowered its forecast cash flow and the surprise announcement on Monday that it planned a capital increase of 650 million euros, circumstances that caused a collapse of the action.

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