Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
Accept our to continue to Moodys.com:
PLEASE READ
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
1. Unless
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
2. You
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
Information.
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
I AGREE
21 Dec 2010
London, 21 December 2010 -- Moody's has today placed the following ratings on review for possible
downgrade, (1) the A2 rating of ANA-Aeroportos de Portugal,
S.A, ("ANA"), (2) the A3 rating of Comboios
de Portugal ("CP"), (3) the A1 rating of Parpública-Participacoes
Publicas (SGPS), SA, ("Parpública"),
(4) the A1 rating of Rede Ferroviaria Nacional REFER, EPE,
("REFER") and (5) the A3 rating of Redes Energeticas Nacionais,
SGPS, S.A. ("REN"). In addition,
the A3 rating of Energias de Portugal, S.A. ("EDP")
and its finance subsidiary, EDP Finance B.V.,
and the provisional Baa2 rating of the proposed issuance of Subordinated
Fixed to Floating Rate Notes by EDP, have been placed on review
for downgrade. The Prime-2 rating of EDP and EDP Finance
B.V is affirmed.
All of the above companies are government related issuers which have an
element of potential government support incorporated within their ratings
in accordance with Moody's rating methodology for government related issuers.
The above actions follow Moody's earlier rating action to place on review
for possible downgrade the A1/Prime-1 ratings of the Government
of the Republic of Portugal ("Portugal"). The main triggers for
the review for downgrade include: (1) Uncertainties about Portugal's
longer-term economic vitality, which will be exacerbated
by the impact of fiscal austerity; (2) concerns about Portugal's
ability to access the capital markets at a sustainable price; and
(3) concerns about the possible impact on the government's debt
metrics of further support for the banking sector, which may be
needed for the banks to regain access to the private capital markets.
Moody's believes that these concerns warrant placing Portugal's
ratings on review for downgrade and says that the rating could be adjusted
downwards by a notch or two.
ANA's A2 rating comprises a view of the fundamental credit quality
of ANA represented by a Baseline Credit Assessment ("BCA")
of 7 (equivalent to A3), and a 1-rating notch uplift for
the likelihood of extraordinary support being provided by Portugal in
the event that this were ever to be required to avoid a default,
as assessed in accordance with Moody's rating methodology for Government
Related Issuers. While rating uplift from ANA's BCA is modest,
a downgrade in the rating of Portugal to A3 would question whether it
was still appropriate to provide a 1 rating notch uplift to ANA's
BCA. Consequently, the review for downgrade will be concluded
following the conclusion of the review for downgrade of the Portugal rating.
ANA is considered well positioned in its A3 equivalent BCA. ANA
has continued to perform well during a difficult European economic environment,
and with passenger growth of 8.1% in the 10 months ending
October 2010, following only modest declines in 2009, is one
of the best performing major airport companies in Europe. This
robust performance evidences ANA's diversified exposure to a number
of economies and highlights its somewhat moderate reliance on the domestic
Portuguese economy. ANA's BCA is supported by (1) ANA's monopoly
of the Portuguese airport system and its robust competitive dynamics,
(2) its rate charging mechanism which is subject to a new framework of
economic regulation, (3) a moderate capital expenditure programme
across the present airports network, and (4) moderate debt leverage,
which would suggest that it is capable of sustaining a BCA at least as
high as that of Portugal, should the rating of Portugal fall to
A3.
CP is the main railway operator in Portugal, controlling 90%
of the passenger market, is 100% owned by the Portuguese
Government though the Ministry of Finance, and in FY2009 reported
revenues of EUR312 million. In accordance with Moody's rating
methodology for Government Related Issuers, CP's A3 rating
reflects the following combination of inputs: (1) A BCA of 17 (Caa1
equivalent), (2) the A1 (on review for downgrade) rating of Portugal,
(3) Very High Dependence, and (4) Very High Support. CP's
A3 rating is two notches below that of its 100% owner, Portugal.
Despite CP's weak standalone financial profile, the A3 rating reflects
its close links to the government and Moody's expectation that the Portugal
would step in with timely extraordinary financial support if required,
despite the lack of an explicit guarantee. As a result of that,
a review of the rating of Portugal translates into a review of the rating
of CP. The rating agency expects that CP's rating will move
in line with Portugal's rating, therefore the review will
not be concluded before Moody's review of Portugal's ratings
is complete.
EDP is the country's largest vertically integrated utility.
Its current A3 rating benefits from a one notch uplift from its current
standalone credit profile for government support, as expressed by
its BCA of 8 (equivalent to a Baa1), in light of its 25.75%
direct and indirect government ownership. The review will consider
whether this one-notch uplift is still warranted in the context
of (1) a potential downgrade of Portugal, (2) the strength of potential
extraordinary support in the light of pressures on the government and
the possible risk of further privatisation. It will also consider
the company's stand-alone strength and any potential impact
on EDP's business and financial risk were the sovereign to be downgraded.
Moody's points out, however, that EDP is a broadly-diversified
company with a significant proportion of regulated businesses under mainly
well-established regulatory regimes; in addition to Portugal,
it has operations in Spain, the US and Brazil. As at 30 September
2010, EDP had secured liquidity into 2012.
Although Parpública does not enjoy explicit guarantees from Portugal,
its rating is in line with the rating of Portugal. The rating is
based on our assumption that this entity will remain a key instrument
for the Portuguese government's public sector management policy.
In addition, Parpública is regarded by law as equal to the
state through the parent-subsidiary relationship defined in Articles
501 to 503 of the Portuguese Commercial Companies Code (Código
das Sociedades Comerciais). This stipulates that, in the
event of default, the parent is ultimately responsible for the debt
of its subsidiaries as long as they are 100% owned by the parent.
Parpública is a Portuguese fully state-owned entity that
acts as a holding company responsible for the management of equity stakes
and real estate assets held by the Portuguese state in domestic companies
of public or strategic interest. As a holding company incorporated
in the form of a joint stock company, Parpública is subject
to the applicable commercial law governing holding companies, including
Decree-Law 495/88, as well as the Portuguese Companies Code.
The legislative framework also includes the Legal Regime of State-Owned
Companies and the State's Entrepreneurial Sector (Decree-Law
300/07), and the Portuguese Civil Code Article 501, which
refers to private management by the state. Parpública's
main role is the management of equity stakes held by the Portuguese state
in Portuguese companies of public or strategic interest, specifically
in terms of the restructuring of the corresponding sector. Parpública's
direct main equity holdings portfolio has a book value of some EUR7bn.
The company's largest holdings are: (1) EDP, (2) ANA,
(3) GALP Energia (utility company); (4) REN, and (5) Águas
de Portugal (AdP) (water and waste management company).
REFER's rating is at the same level as its owner Portugal.
Moody's would expect REFER's rating to remain close to that
of Portugal and to move in line with the Portugal rating, therefore
the review will not be concluded before Moody's review of Portugal's
ratings is complete. In accordance with Moody's rating methodology
for Government Related Issuers, REFER's A1 rating reflects
the following combination of inputs: (1) A BCA of 17 (Caa1 equivalent),
(2) the A1 (on review for downgrade) rating of Portugal, (3) Very
High Dependence, and (4) Very High Support. The BCA,
which expresses a view of the fundamental credit quality of REFER,
has been lowered from 15 to 17. This reflects Moody's view
that REFER, on a standalone basis, would be increasingly challenged
to cover its financing requirements given the constraints in the debt
markets and increased debt costs in Portugal. REFER has a very
weak financial profile and a debt burden which is substantially more than
can be supported by generated cash flow. REFER has significant
funding requirements over the next 12 months to meet interest expense,
its capital expenditure programme, and debt refinance requirements.
In addition REFER has a poor liquidity position given its a large financing
requirements relative to available committed liquidity support.
A material part of this liquidity support comes in the form of a EUR500m
committed bank loan facility which is available for drawing until August
2011. Consequently, REFER is increasingly exposed to debt
market conditions.
REN is the exclusive long-term concessionaire of Portugal's mainland
high-voltage electricity transmission grid and the country's high-pressure
natural gas transportation network. REN's A3 rating benefits from
a one-notch uplift for potential government support from its stand-alone
credit profile - as expressed by REN's 8 (Baa1-equivalent)
BCA - in light of the 51% (direct and indirect) ownership
by the Portuguese state and the company's strategic importance associated
with the control of key infrastructures. The rating review will
focus on whether this one-notch uplift is still warranted.
More generally, the rating reviews of the above issuers will also
focus on their individual liquidity profiles and consequent exposure to
Portuguese debt market conditions, and the continued appropriateness
of the level of potential extraordinary government support embedded within
their ratings. A result of the rating review there may be a widening
in the difference between the rating of Portugal and one or more issuers
subject to this rating review.
For additional information on rating factors, please refer to the
individual issuer credit opinions, available on www.moodys.com.
Please see the ratings tab on the issuer / entity page on Moodys.com
for the last rating action and the rating history of each issuer.
The principal methodology used in rating the above issuers in conjunction
with this rating action is Moody's "Government Related Issuers:
Rating Methodology Update", published in July 2010. Other
methodologies and factors that may have been considered in the process
of rating these issuers can also be found on Moody's website.
London
Paloma San Valentin
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
London
Monica Merli
MD - Infrastructure Finance
Infrastructure Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's places ratings of Portuguese government related issuers on review for downgrade
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications. To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S. To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER. Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.” Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser. Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively. MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000. MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
|
|
