French Toll-Road Operator Sanef 'BBB/A-2' Ratings Affirmed Following Similar Action On Parent Abertis; Outlook Negative Oct 12
- Language: English
- Published: October 2012
- Region: France
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The rating on Abertis Infraestructuras S.A. reflects the group's excellent business profile, with strong and stable cash flow generation derived largely from its toll road concession business, a supportive regulatory framework in Spain and France, and fairly manageable capital-expenditure needs. These strengths are offset by Abertis' weakened financial profile and aggressive dividend policy, as well as its appetite for acquisitions, which could further impair its financial profile and, eventually, its business profile. In April 2006, Abertis completed the predominantly debt-financed acquisition of French toll road operator Sanef (A/Negative/A-1). This doubled the size (in kilometers) of Abertis' toll road portfolio, increased its average concession length, and enhanced its geographic diversification. The subsequent debt-funded purchase of a 32% minority stake in Eutelsat...
Companies mentioned in this report are: Abertis Infraestructuras S.A.
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Abertis Infraestructuras S.A.