Commentary

Current Investigation Affecting Former Acciona Construction Employee Unlikely to Have Credit Impact for Now

Industrials, Utilities & Independent Power

Summary

This commentary assesses the credit impact of the current Investigation affecting a former Acciona, S.A. (Acciona) construction employee in alleged payments for the awarding of public contracts.

Key highlights include:
-- We consider this to have a negative credit impact from an Environmental, Social, and Governance (ESG) standpoint, but it is unlikely to affect Acciona's credit ratings for now.
-- We note the group's swift response through a variety of actions to prevent any fraudulent activity.
-- We consider Acciona's backlog, financial leverage, maturity profile, and liquidity to be robust enough to weather any potential impact from reputation, fines, or reduced access to capital; however, the potential restriction on civil work contracts could have a negative impact on the credit rating.
-- We will continue to monitor the situation and will take the necessary credit rating actions if the financial metrics or business assessment show any deterioration.

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