Fitch rates Obrascon bond BB-

Fitch Ratings said it assigned Obrascon Huarte Lain SA's prospective unsecured bond an expected BB- rating. The rating is in line with the company's senior unsecured BB- rating. Its issuer default rating is BB-.

The outlook is negative.

The final amount and the maturity of the bond are not yet in the public domain. The rating is contingent upon the receipt of final documents.

The bond will be used to refinance up to €300 million of the existing 2012 bonds. This new bond is mildly positive for the company's ratings, extending existing bond debt maturities by three years, Fitch said.

The negative outlook indicates that a downgrade could occur if the company underperforms current expectations, including a material increase in leverage, worsening liquidity, reduced covenant headroom and further material equity injections into the concessions business, the agency said.

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