S&P turns Matador Bidco view to negative

S&P said it affirmed its BB- ratings on Matador Bidco but revised the outlook to negative from stable.

Matador Bidco's credit measures could be hurt by lower than anticipated dividend from Compania Espanola de Petroleos SAU, which accounts for the change in outlook, S&P said.

“We see an increasing likelihood that Cepsa's dividends will be much less than our previous expectations. Although we continue to factor in the minimum annual dividend basis of €350 million (the minimum amount stipulated by the shareholders' agreement), so far Cepsa has paid only €30 million for 2020. Cepsa has not yet communicated its plans for additional distributions for 2020 and we see a chance that the shareholders might agree to a lower distribution in 2020 to preserve cash at Cepsa, given the unprecedented circumstances,” S&P said in a press release.

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