Friday, June 8, 2012
Fitch cuts Repsol rating to 'BBB-'
Fitch Ratings has downgraded Repsol S.A's long-term issuer default rating (IDR) to 'BBB-' from 'BBB' and removed it from Rating Watch Negative (RWN).
The downgrade follows increased certainty about the financial implications of the expropriation of YPF S.A.
Fitch assumes that Repsol will not receive any cash compensation from the Argentine government in the short to medium term and will not recover any of the cash lent to The Petersen Group to purchase 25% of YPF's capital several years ago.
The negative outlook is mainly driven by the uncertainty surrounding the execution of the strategic plan at this stage and weakness in the Spanish macroeconomic environment.
The downgrade follows increased certainty about the financial implications of the expropriation of YPF S.A.
Fitch assumes that Repsol will not receive any cash compensation from the Argentine government in the short to medium term and will not recover any of the cash lent to The Petersen Group to purchase 25% of YPF's capital several years ago.
The negative outlook is mainly driven by the uncertainty surrounding the execution of the strategic plan at this stage and weakness in the Spanish macroeconomic environment.
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