Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - JPMorgan downgraded AENA SME SA (BME:AENA) (OTC:ANNSF) from Neutral to Underweight and lowered its price target to EUR21.00 from EUR23.00.
The downgrade follows AENA’s recently announced capital expenditure plan, which JPMorgan indicates will significantly reduce the company’s free cash flow yields, previously a key strength in AENA’s investment case.
The investment bank notes that Barcelona’s airport expansion will extend into the DORA IV regulatory period, suggesting a prolonged timeframe of elevated capital expenditure for the Spanish airport operator.
JPMorgan estimates that AENA’s free cash flow will no longer be sufficient to finance the company’s dividend policy over the next few years, potentially requiring the company to raise debt to maintain dividend payments.
The firm also highlighted additional concerns including signs of slowing traffic and risks of operational disruption from major construction works, leading to its conclusion that AENA presents "the least favourable balance of risk and reward in the space."
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