When it rains it pours. Stock in Sacyr and ACS plunged yesterday on fears that their debt associated with Repsol and Iberdrola ventures (around 20 billion euros) could lose value, potentially leading to insolvency for both.
ACS, a construction company headed by Manuel Manrique, shaved 12.45% on risk that Repsol, Spain's largest petroleum company, might have to cut its dividend, which would make it difficult for ACS to pay its creditors.
ACS shares were down 10% on the day and continued a bearish trend that began last week in light of the risk that the national banking sector, led by BBVA, would force it to put up more capital guarantees to secure against declines in Iberdrola, whose stock fell 2.78% yesterday.
Analysts from Banco Madrid, consulted by elEconomista, that Repsol will have to deal with Argentina's refusal to pay a sufficient indemnization until an international arbitrage court sentences it to do so. This means that Sacyr will have more time to pay its debt, which is currently due in 2015, potentially making it difficult for Sacyr to meet its goal of keeping its credit rating at investment grade levels.
