Iberdrola, Enel May Dodge Cuts as Spain Plans Sale: Euro Credit
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The Spanish government’s plan to sell about 14 billion euros ($19 billion) of bonds to pay debt owed to the country’s biggest power companies may help Iberdrola SA and Enel SpA avoid credit-rating downgrades.
The bonds, whose proceeds will be used to pay back utilities for subsidizing power rates, are being marketed this week to investors by bankers at Deutsche Bank AG, Goldman Sachs Group Inc. and four other firms. The sale comes after Moody’s Investors Service lowered the country’s credit rating to Aa1 from Aaa on Sept. 30 and said the outlook is “stable.”