Moody’s downgrades Grupo Aldesa

Moody's Investors Service said it downgraded to B3 from B2 the corporate family rating and to B3-PD from B2-PD the probability of default rating of Grupo Aldesa SA.

Concurrently, Moody's downgraded to B3 from B2 the instrument rating on the €250 million senior secured notes due April 2021, issued by Aldesa Financial Services SA.

The outlook remains stable.

“The downgrade was prompted by Aldesa's weakening cash flow generation during the first three quarters of 2018 (3Q-18) when free cash flow (company-defined) in the restricted group declined to €109 million negative from around €98 million negative in the prior year,” the agency said in a news release.

“Main driver for this were higher working capital needs due to increased activity in projects with private clients in Spain and Mexico (mostly in the renewable energy segment), which are still young and require payments according to milestones.”

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