Moody's rates Obrascon Huarte Lain notes Ba2

Moody's Investors Service said it assigned a provisional Ba2 (LGD3) rating to the proposed issuance of €300 million worth of senior notes due 2020 by Obrascon Huarte Lain SA.

The company's Ba2 corporate family and probability of default ratings, as well as the ratings on its existing senior unsecured debt instruments, remain unchanged.

The outlook is negative.

The proceeds will be used to purchase an equivalent amount of its outstanding €700 million worth of senior notes due 2015. The new notes will rank pari passu with the company's existing senior unsecured notes.

The ratings reflect the senior unsecured status and pari passu ranking of the notes with a large majority of the company's existing and future obligations, Moody's said.

The ratings and outlook remain unchanged after this offering, given that the transaction is leverage-neutral, the agency said.

But the proposed transaction will improve its debt maturity profile, as the company is pushing to 2020 part of its 2015 debt maturities, Moody's said.

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