Fitch lowers Obrascon

Fitch Ratings said it downgraded Obrascon Huarte Lain SA's long-term issuer default and senior unsecured ratings to BB- from BB+ and affirmed the short-term issuer default rating at B, and removed ratings from Rating Watch negative.

The outlook is negative.

The downgrade reflects heightened concerns about the underlying risk profile of the company's business model, the agency said.

OHL has taken on leverage in recent years to fund equity stakes in relatively immature, ring-fenced concessions, the agency noted, which exposes creditors at the parent company to heightened risks.

The issuer has a net debt-to-EBITDAR ratio of 3.2x as of the first half of 2009 compared with 2.7x in the first half of 2008.

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