Moody's ups Obrascon, rates Caa2

Moody's Investors Service said it upgraded Obrascon Huarte Lain SA's corporate family rating to Caa1 from Caa2 and the company's probability of default rating to Caa1-PD from Ca-PD/LD. Concurrently, Moody's withdrew the Caa3 instrument ratings on its senior unsecured notes due 2022 and 2023 and assigned a Caa2 rating to the new €487 million of guaranteed senior secured notes due 2026 issued by OHL Operaciones SAU, a wholly-owned subsidiary of Obrascon Huarte Lain.

Moody’s changed the parent’s outlook to positive from negative and assigned a positive outlook to OHL Operaciones.

The rating actions and outlook reflect Obrascon Huarte Lain’s completion of its financial restructuring, a significant reduction in debt and improvement in liquidity, the agency said.

“The positive outlook indicates Moody's expectation that OHL will be able to gradually improve its profitability and operating performance, which combined with further debt repayment using the possible proceeds from the disposal of certain assets, will allow OHL improve its credit metrics to levels in line with a B3 rating,” the agency said in a press release.

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