Fitch Revises 7 Spanish PSEs' Outlook to Stable

Fri Nov 8, 2013 11:40am EST

BARCELONA, November 08 (Fitch) Fitch Ratings has revised the Outlooks on seven Spanish credit-linked public sector entities (PSE) to Stable from Negative and affirmed their Long-term and Short-term ratings. The Fondo de Reestructuracion Ordenada Bancaria (FROB) bonds guaranteed by the Kingdom of Spain have also been affirmed. The respective bond issues/senior unsecured ratings have also been affirmed. The rating actions follow the agency's revision of the Outlook of the Kingdom of Spain's Issuer Default Rating (IDR) to Stable from Negative (see 'Fitch Revises Spain's Outlook to Stable; Affirms at 'BBB' dated 1 November 2013 at www.fitchratings.com). A complete list of rating actions is provided at the end of this commentary. KEY RATING DRIVERS The Outlook on the PSEs owned by Spain's sovereign or local and regional governments has been revised to Stable from Negative following a similar rating action on their sponsors, given their credit links to their public sector owners. The action is in line with the agency's "Rating of Public Sector Entities - Outside the United States" methodology. RATING SENSITIVITIES Any change to the sponsors' ratings will be reflected in the ratings of the PSEs. Additionally any material change to the legal status or control and supervision of the sponsors will affect the ratings. The rating actions are as follows: PSEs and bond issues that are credit linked to the Sovereign: Administrador de Infraestructuras Ferroviarias (ADIF) Long-term foreign and local currency ratings of 'BBB' affirmed; Outlook revised to Stable from Negative Short-term foreign and local currency rating of 'F2' affirmed Corporacion de Reservas Estrategicas de Productos Petroliferos Long-term foreign and local currency ratings of 'BBB' affirmed; Outlook revised to Stable from Negative Short-term foreign currency rating of 'F2' affirmed Pequenos y Medianos Astilleros (PYMAR) Long-term foreign currency IDR of 'BBB-' affirmed; Outlook revised to Stable from Negative Short-term foreign currency IDR of 'F3' affirmed Sociedad Estatal de Participaciones Industriales (SEPI) Long-term foreign and local currency ratings of 'BBB' affirmed; Outlook revised to Stable from Negative Short-term foreign currency rating of 'F2' affirmed Fondo de Reestructuracion Ordenada Bancaria (FROB) EUR8.8bn bonds guaranteed by the Kingdom of Spain affirmed at 'BBB' PSEs that are credit linked to Regional Governments: Institut Catala de Finances (credit linked to the Autonomous Community of Catalonia (BBB-/Stable/F3) Long-term foreign currency IDR of 'BBB-' affirmed; Outlook revised to Stable from Negative Short-term foreign currency IDR of 'F3' affirmed Instituto Valenciano de Finanzas (credit linked to the Autonomous Community of Valencia (BBB-/Stable/F3) Long-term foreign and local currency ratings of 'BBB-' affirmed; Outlook revised to Stable from Negative Short-term foreign currency rating of 'F3' affirmed Viviendas Sociales e Infraestructuras de Canarias SA (VISOCAN; credit linked to the Autonomous Community of the Canary Islands (BBB-/Stable/F3). Long-term foreign and local currency ratings of 'BB+'; Outlook revised to Stable from Negative Visocan's ratings maintain a one notch difference with the Long-term ratings of Autonomous Community of the Canary Islands. Contact: Primary Analysts: Guilhem Costes (ADIF), Instituto Valenciano de Finanzas) Senior Director +34 93 323 84 10 Fitch Ratings Espana, S.A.U. Paseo de Gracia, 85 Barcelona 08008, Spain Fernando Mayorga (CORES, PYMAR,VISOCAN, FROB) Managing Director +34 93 323 84 00 Fitch Ratings Espana, S.A.U. Paseo de Gracia, 85 Barcelona 08008, Spain Ines Callahan (Institut Catala de Finances, SEPI)) Associate Director +34 93 467 87 45 Fitch Ratings Espana, S.A.U. Paseo de Gracia, 85 Barcelona 08008, Spain Secondary Analysts: Guilhem Costes (CORES, Institut Catala de Finances, VISOCAN, FROB)) Senior Director +34 93 323 84 10 Fernando Mayorga (ADIF, SEPI) Managing Director +34 93 323 84 00 Ines Callahan (Instituto Valenciano de Finanzas, PYMAR) Associate Director +34 93 467 87 45 Committee Chairperson Raffaele Carnevale Senior Director +39 02 87 90 87 203 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, 'Rating of Public Sector Entities Outside the United States', dated 4 March 2013 and 'Tax-Supported Rating Criteria', dated 14 August 2012, are available on www.fitchratings.com. Applicable Criteria andALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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