S&P downgrades Ellaktor

Standard & Poor’s said it lowered the long- and short-term corporate credit ratings on Ellaktor SA to B from B+ and affirmed its B short-term rating.

The agency also said it removed the ratings from CreditWatch, where they were placed in February.

The outlook is negative.

The downgrade follows a similar downgrade of Greece on April 15, S&P said.

The differential between the ratings on Ellaktor and the related sovereign is two notches, the maximum allowed under S&P’s criteria.

Therefore, the one-notch downward rating action on Greece has triggered a similar rating action on Ellaktor, the agency said.

The downgrade and negative outlook also capture the downside risks associated with the change in the Greek government, S&P added.

The negative outlook on Ellaktor reflects the outlook on Greece, as well as the uncertainty around Ellaktor’s future operating performance due to weakening macroeconomic conditions in Greece, the agency said.

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