Moody's: Repsol to negative

Moody's Investors Service said it changed the outlook for Repsol YPF SA to negative from stable.

The agency also said it maintained the Baa1 issuer rating on the company.

Moody's also said it maintained the Baa1 and prime-2 senior unsecured debt ratings of Repsol International Finance BV and the Baa3 preferred stock rating of Repsol International Capital Ltd.

The outlook revision was prompted by news that Repsol has acquired 10% of its share capital from Sacyr at a total cost of €2.6 billion, Moody's said.

Moody's said it views the transaction as material in the context of Repsol's overall financial profile.

While the group has currently available liquidity of €9.4 billion, this acquisition will reduce its overall financial flexibility, the agency said.

Moody's said it understands that it is Repsol management's intention to place the shares acquired from Sacyr in an orderly fashion within a relatively short timeframe to institutional or strategic investors supportive of the long-term strategic objectives of the group.

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