S&P keeps Watercraft Capital bonds on watch

Standard & Poor’s said it kept its BBB rating on the senior secured bonds issued by Watercraft Capital SA on CreditWatch with negative implications.

The rating action follows the Spanish government’s Royal Decree Law announced on Oct. 3, accepting the request of Escal UGS to relinquish its concession to operate the underground natural gas storage project Castor.

The ongoing CreditWatch reflects S&P’s view of the uncertainties associated with the repayment of Escal’s senior secured bonds, issued through Watercraft Capital, as the compensation to be paid for the termination of the concession does not fully cover the bonds’ principal and accrued interest.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.