Moody’s Upgrades OHLA's Rating to B3, Outlook Stable

Moody's Ratings upgraded Obrascon Huarte Lain S.A. (OHLA) from Caa2 to B3 for its corporate family rating (CFR) and probability of default rating (PDR) on March 12, 2025. This upgrade also applies to the current secured senior bonds issued by its subsidiary OHL Operaciones S.A.U., raised from Caa2 to B3. The outlook for both entities remains stable.

The rationale behind this upgrade is OHLA's stronger and more sustainable capital structure following its capital increase in February 2025. Moody's noted a reduction in OHLA's debt-to-EBITDA ratio from 3.5x to 2.5x over the 12 months leading up to December 2024. The company has extended its debt maturity profile and fully repaid a €40 million ICO-backed bank loan due in March 2025. Despite these improvements, Moody's emphasizes the B3 rating reflects OHLA's complex structure, including variable cash flows and significant investments that require ongoing cash injections.