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Fitch Places Grupo Aldesa S.A. on Rating Watch Positive
08 JAN 2020 09:49 AM ET
Fitch Ratings - Barcelona - 08 January 2020:
Fitch Ratings has placed Spanish engineering and construction (E&C) company Grupo Aldesa S.A.'s (Aldesa) Long-Term Issuer Default Rating (IDR) of 'B-' on Rating Watch Positive (RWP). Concurrently, Fitch has placed the senior secured rating of the wholly-owned subsidiary Aldesa Financial Services S.A of 'B-' on RWP.
The rating action follows the announcement of Aldesa's investment agreement with CRCC International Investment Group (CRCCII), a wholly-owned subsidiary of China Railway Construction Corporation Limited (CRCC). CRCCII will acquire a 75% stake in Aldesa while existing shareholders will retain the remaining 25% of the share capital. The transaction will include an approximate EUR250 million capital increase, which is sufficient to repay Aldesa's EUR245 million Luxembourg bond.
The RWP reflects Fitch's expectation that the acquisition and capital increase will strengthen Aldesa's credit profile, notably leading to a stronger liquidity position and financial structure for the company, by removing refinancing risk. Fitch will assess the parent and subsidiary linkage and its impact on Aldesa's credit profile after the transaction closes. Fitch expects to resolve the RWP in 2020.
CRCC is one of the largest integrated construction groups in the world with revenues of over USD110 billion in 2018.
08 JAN 2020 09:49 AM ET
Fitch Ratings - Barcelona - 08 January 2020:
Fitch Ratings has placed Spanish engineering and construction (E&C) company Grupo Aldesa S.A.'s (Aldesa) Long-Term Issuer Default Rating (IDR) of 'B-' on Rating Watch Positive (RWP). Concurrently, Fitch has placed the senior secured rating of the wholly-owned subsidiary Aldesa Financial Services S.A of 'B-' on RWP.
The rating action follows the announcement of Aldesa's investment agreement with CRCC International Investment Group (CRCCII), a wholly-owned subsidiary of China Railway Construction Corporation Limited (CRCC). CRCCII will acquire a 75% stake in Aldesa while existing shareholders will retain the remaining 25% of the share capital. The transaction will include an approximate EUR250 million capital increase, which is sufficient to repay Aldesa's EUR245 million Luxembourg bond.
The RWP reflects Fitch's expectation that the acquisition and capital increase will strengthen Aldesa's credit profile, notably leading to a stronger liquidity position and financial structure for the company, by removing refinancing risk. Fitch will assess the parent and subsidiary linkage and its impact on Aldesa's credit profile after the transaction closes. Fitch expects to resolve the RWP in 2020.
CRCC is one of the largest integrated construction groups in the world with revenues of over USD110 billion in 2018.
