Fitch downgrades Abengoa

Fitch Ratings said it downgraded Abengoa, SA’s issuer default rating and senior unsecured debt rating to B from B+ with a recovery rating of RR4.

The agency also said it downgraded Abengoa Finance, SAU’s and Abengoa Greenfield, SAU’s senior unsecured ratings to B with recovery rating of RR4 from B+ with recovery rating of RR4.

The outlook is stable.

The downgrades reflect an increase in Abengoa’s adjusted net leverage for 2014 to 5.1x compared with previous expectations of 4.0x, breaching the negative trigger for a downgrade, Fitch said.

The downgrade also considers the company’s improved disclosure related to cash linked to supplier payments, the agency said.

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