Fitch changes Isolux view to negative

Fitch Ratings said it revised Grupo Isolux Corsan, SA's outlook to negative from stable.

The long-term issuer default rating and senior unsecured rating were both affirmed at B+.

Fitch said the negative outlook reflects Isolux's worse-than-expected operating performance in 2014 and subdued expectations for 2015 mainly as a result of the company's exposure to Brazilian depressed economy.

The agency also highlighted Isolux's limited covenant headroom in its syndicated facility as of December 2014 (with net debt to EBITDA at 3.45 times as defined in the documentation compared with a maximum of 3.5 times). This is a result of a lower 2014 EBITDA of €252 million (compared with previous expectations of around €300 million) and a significant working capital outflow of around €102 million.

Fitch's adjusted net leverage ratio stood at 5.9 times in 2014 compared with a negative trigger of 4.5 times on a sustained basis.

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