Grifols shares plunged to new all-time lows on the Madrid Stock Exchange on Wednesday, following Moody's decision to place the Spanish group's debt rating on negative watch.

The rating agency justified its decision by the prospect of continued negative cash flow for the 2023 financial year, the announcement of the postponement of its audited results and the arrival of two important debt deadlines.

Despite the planned sale of its 20% stake in Shanghai RAAS (SRAAS), the timetable for the transaction remains uncertain, and raises doubts as to whether the company will be able to meet its debt repayments due in 2025, according to Moody's.

The stock has also fallen victim to the publication of a new report by short-selling specialist Gotham City Research, which has had its eye on the stock since the beginning of the year.

In its report, the investment fund continues to question the company's commitment to 'transparency, integrity and ethical behavior'.

At 2:30 pm, the stock was the worst performer on the pan-European STOXX 600 index, down 15%.

Since Gotham City Research began attacking the group on January 9 for possible accounting manipulations designed to minimize its debt, Grifols shares have lost more than half their value.

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