Sociedad Estatal de Participaciones Industriales (SEPI)

This report does not constitute a rating action. Overview Key strengths Key risks Almost certain likelihood of timely and sufficient extraordinary central government support if Sociedad Estatal de Participaciones Industriales (SEPI) faced financial distress. Potentially high financing needs from some of the chronically loss-making companies in SEPI's portfolio. Highly strategic role for the Spanish state and its economy, given its responsibility to manage state holdings in strategic companies. Income influenced by economic cycles, due to its reliance on dividends from its listed companies. Subject to public law and cannot be privatized easily. Limited access to government guarantees, which apply only to bond and note issuances, leaving other borrowings sources unguaranteed. Although SEPI has issued bonds in the past, we expect

...Following a peak at about 3.51 billion in 2024 from 3.36 billion in 2023, SEPI's debt should remain stable through 2026 before gradually declining thereafter. Although SEPI has issued bonds in the past, we expect it will continue funding its financial needs through loans from financial institutions. SEPI could access a state guarantee for debt market issuances, but it has not used this option yet. In our view, SEPI will sustain a stable liquidity position, supported by available credit lines of 535 million as of September 2025. Additionally, SEPI benefits from surplus cash balances held by certain group entities These balances are deposited into SEPI's accounts and can be used to cover operating expenses, giving SEPI with flexibility to manage its short-term liquidity requirements throughout the year. Although SEPI remains exposed to political uncertainty, we acknowledge that it has navigated similar circumstances in the past. The Spanish government's parliamentary support continues to...

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