French Conglomerate Bouygues Downgraded To 'BBB+' After Completed Share Buyback; Off Watch; Outlook Stable Nov 11
Standard & Poors, November 2011
Abstract
We think French conglomerate Bouygues' recently completed -1.25 billion share repurchase will bring its credit ratios down markedly this year, contrary to our previous expectations. Given Bouygues' likely heavy capital expenditures in 2012 in the wake of the telecoms 800 megahertz frequency auction, and our anticipation of ongoing margin pressures in the telecoms division, we think the group's credit ratios will not recover materially next year. We lowered our long-term rating on Bouygues to 'BBB+' from 'A-', removed it from CreditWatch negative, and affirmed the 'A-2' short-term rating. The stable outlook reflects our opinion that Bouygues' credit profile would be comfortably positioned at the new rating level. PARIS (Standard & Poor's) Nov. 30, 2011--Standard & Poor's Ratings Services today said...
Companies mentioned in this report are: Bouygues S.A.
Action: Affirmed
Action: Downgraded
Action: Outlook: Stable
Action: Removed From CreditWatch
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Bouygues S.A.
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