Bulletin: The Legal Challenge To Ence's Concession Extension At Pontevedra Won't Have A Material Credit Impact In The Medium Term

LONDON (S&P Global Ratings) March 20, 2019--S&P Global Ratings said today that electricity and pulp producer Ence Energía y Celulosa S.A. (BB/Stable/--) is unlikely to face a material credit impact in the medium term from the legal dispute surrounding the validity of the extension obtained in 2016 of its concession in Pontevedra. In 2016, the Spanish government extended Ence's concession in Pontevedra by 60 years to 2073. This extension was challenged by the City Council of Pontevedra, local environmental group the Asociación por la Defensa de la Ría de Pontevedra (APDR), and Greenpeace, giving rise to three legal proceedings. Ence operates one of its two pulp mills in Pontevedra. The mill generated around €99 million EBITDA in 2018 and accounts

...LONDON (S&P Global Ratings) March 20, 2019--S&P Global Ratings said today that electricity and pulp producer Ence Energfa y Celulosa S.A. (##/Stable/--) is unlikely to face a material credit impact in the medium term from the legal dispute surrounding the validity of the extension obtained in 2016 of its concession in Pontevedra. In 2016, the Spanish government extended Ence's concession in Pontevedra by 60 years to 2073. This extension was challenged by the City Council of Pontevedra, local environmental group the Asociaci=n por la Defensa de la Rfa de Pontevedra (APDR), and Greenpeace, giving rise to three legal proceedings. Ence operates one of its two pulp mills in Pontevedra. The mill generated around 99 million EBITDA in 2018 and accounts for about 40% of Ence's pulp production volume. Ence is defending the validity of this extension in the Spanish courts. These legal proceedings are likely to last four-to-six years. If the new criteria now flagged by the Spanish government considering...

Bulletin