Abertis Infraestructuras : 07/30/2014 Fitch Ratings upgrades Abertis’s outlook from “negative” to “stable”

The agency highlights the group's cost-cutting drive in recent years and its proactive debt management approach

The credit rating agency Fitch Ratings has upgraded Abertis's outlook from "negative" to "stable," maintaining the company's rating at BBB+. According to a report issued by the agency, the revised outlook is based on an increase in and stabilisation of traffic using Abertis's road network in Spain during the first half of 2014.

Fitch Ratings highlighted the group's major cost-cutting drive in recent years, offsetting the negative effect of the fall in traffic since 2008. It also referred to the sale of airport assets and diversification of the telecommunications business through expansion in the mobile telephone and satellite telecommunications sectors.

According to the agency, in the coming months Abertis will benefit from the brighter macroeconomic situation in Spain and the revenues generated from the latest asset sell-offs in the airports business; reducing its debts over the next few years.

In its report, Fitch Ratings underlined the group's proactive approach to managing its debt, which led to the group gaining recognition and easy access to the bonds market.

Abertis was heavily involved in restructuring its debt during the first six months of 2014, refinancing more than 1 billion euros. Highlights include the June ten-year bond issue which was placed with a coupon of 2.5% - the lowest rate achieved by any Ibex company. Two ten- and twelve-year bond issues were also placed in March with a coupon of 3.125%, also an all-time low for the group.

Abertis has no significant financing requirements until the end of 2017, while the group's net debt amounted to 13,597 million euros at the end of the first half of 2014; of which 67% is capital market debt.

In February, the credit rating agency Standard & Poors also upgraded Abertis's outlook from "negative" to "stable", off the back of the improvement in macroeconomic forecasts for the European Union, particularly, Spain. The credit rating remained unchanged at BBB.