S&P downgrades Isolux, notes to CCC-

Standard & Poor's said it lowered its long-term corporate credit rating on Isolux Corsan SA to CCC- from B-.

The outlook is negative.

At the same time, the agency downgraded its short-term corporate credit rating on the company to C from B.

S&P also lowered its issue rating on the company's €850 million senior unsecured notes to CCC- from B-. The recovery rating on this debt instrument is unchanged at 4, indicating an expectation of average (30%-50%; lower end of the range) recovery in the event of a payment default.

S&P said the downgrade comes as Isolux's weak operational cash flows continue to come under heavy pressure from a high cash interest burden. This results in very little cash available to repay short-term debt maturities and to fund capex and potentially sizable working capital swings.

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