S&P: Abengoa on watch

Standard & Poor's said it placed its B+ long-term ratings on Abengoa SA and on its indirect subsidiary Befesa Zinc SAU on CreditWatch with negative implications.

The agency said the CreditWatch listing reflects its view that there is now a 50% chance of a downgrade in the short-term if Abengoa's 2012 credit metrics are weaker than previously assumed or if the recently reported deteriorated performance continues, because S&P believes it would delay the deleveraging that it factors into the base case for the B+ rating level.

The CreditWatch listing on Befesa Zinc mirrors that on its indirect owner Abengoa, as S&P expects the rating on Befesa to be directly affected if it were to downgrade Abengoa, given the latter's effective control over Befesa.

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