Fitch Downgrades Abengoa's (ABGB) Long-Term IDR to 'RD'

Fitch Ratings has downgraded Spanish engineering and construction group Abengoa, S.A.'s (NASDAQ: ABGB) Long-term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'CC'. Fitch has also affirmed Abengoa's, Abengoa Finance, S.A.U's and Abengoa Greenfield, S.A.U.'s senior unsecured ratings at 'C'/'RR5' (Recovery Rating).

KEY RATING DRIVERS
This rating action reflects the company's announcement on 10 December that some series of notes under its EUR750m euro-commercial paper programme have not been paid. This is a selective payment default on a specific class of debt, which aligns with Fitch's definition of Restricted Default.

On 25 November 2015, Abengoa announced its intention to seek protection under Article 5 bis of the Spanish Insolvency Law (Ley Concursal) and has been negotiating a debt restructuring with its creditors.

RATING SENSITIVITIES
Positive: Future developments that may, individually or collectively, lead to positive rating actions include:
-An improved liquidity profile, after agreements with its creditors, most likely from significant asset sales or an equity injection from a current investor or third-party.

Negative: Future developments that may, individually or collectively, lead to negative rating actions include:
-Bankruptcy or other forms of winding-up, or a cessation of business, which would result in a 'D' rating.

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