The FINANCIAL — London/Barcelona-10 October 2011: Fitch Ratings has downgraded two Spanish public sector entities (PSE) following the downgrade of the Kingdom of Spain's Issuer Default Rating (IDR) to 'AA-' from 'AA+'.
Sociedad Estatal de Participaciones Industriales' (SEPI) Long-term foreign currency and local currency ratings and Pequenos y Medianos Astilleros' (Pymar) IDR have been downgraded because they are credit linked to the sovereign. SEPI's ratings are equalised with those of the sovereign because of its legal status and close control by the state. Pymar's ratings are notched down by one rating category (three notches) from the sovereign.
In addition, the EUR 7.75bn bonds issued by Fondo de Reestructuracion Ordenada Bancaria (FROB) have also been downgraded to 'AA-' from 'AA+' as they are guaranteed by the Kingdom of Spain.
The rating actions are as follows:
Sociedad Estatal de Participaciones Industriales
Long-term foreign and local currency ratings downgraded to 'AA-' from 'AA+'; Outlook Negative
Short-term rating affirmed at 'F1+'
Pequenos y Medianos Astilleros (Pymar)
Long-term IDR downgraded to 'A-' from 'A'; Outlook Negative
Short-term IDR downgraded to 'F2' from 'F1'
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