Fitch cuts Obrascon Huarte Lain

Fitch Ratings said it has downgraded Obrascon Huarte Lain SA's long-term issuer default rating and senior unsecured rating to BB+ from BBB- and downgraded the short-term issuer default rating to B from F3.

The agency said it has simultaneously placed the long-term issuer default rating and senior unsecured rating on rating watch negative.

According to Fitch, the downgrades primarily reflect concerns about medium-term cash flows from Obrascon Huarte Lain's concession investments, which will likely be materially less than previously expected.

The agency added that Obrascon Huarte Lain has increased debt levels at the parent company in recent years to finance equity investments into ring-fenced concession projects.

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