Ferrovial's rating may be affected depending on the number of shareholders who oppose its transfer

Ferrovial's rating may be affected depending on the number of shareholders who oppose its transfer

The Fitch rating agency has warned that Ferrovial’s debt ratios will be affected by its change of headquarters to the Netherlands, which could affect its credit rating, depending on the number of shareholders who oppose the operation.

The company has made a commitment to shareholders who do not agree to carry out this operation to compensate them by buying their shares at a fair market price, as long as they exercise their right of separation.

In fact, if the number of shareholders that opposes represents more than 2.57% of the total, which means a maximum payment of 500 million eurosthe operation would not go ahead, since it is the limit that Ferrovial has set so as not to have a great impact on its accounts.

In a statement, Fitch has indicated that the payment of this compensation will affect the company’s debt, in such a way that it expects it to increase by the end of 2023, although to fall later in 2024.

For this reason, the agency does not expect this corporate move by the Spanish multinational to have a major impact on its rating, which now stands at ‘BBB’ with a ‘stable’ outlook, and rules out changes in the group’s credit profile or in its profitability in the medium term.

In any case, once the merger with its Dutch subsidiary, which will become the new parent company, is completed, Fitch will withdraw Ferrovial’s rating and assign another to the Dutch company (Ferrovial International), which will depend on the situation in where the company is at that time.

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“The impact on the ratings of the completion and final terms of the planned transaction will depend primarily on the number of withdrawal rights exercised and the financing thereof,” Fitch has warned.




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