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Repsol

Companies, Ibex, Spanish economy 18th November 2022

S&P hikes Repsol rating to BBB+ from BBB after company strengthens balance sheet amid high raw material prices

Renta 4 | S&P has raised its rating on Repsol from BBB to BBB+, while maintaining its A-2 in the short-term, with a stable outlook. The ratings agency has based its move on a backdrop of high raw material prices, divestments and Repsol’s prudent financial policies to strengthen its balance sheet and improve credit measures. S&P flags that the market situation will favourably affect the company throughout the cycle. This…

salaries spain

Spanish economy 17th November 2022

Spain: 40% of employees earned at most the SMI in 2021 (€13,300)

The average gross annual wage stood at €21,519 in Spain in 2021, up 4.9% from €20,503 in 2020. The increase is the highest recorded since 2008, when they grew by more than 5%, but it is still far from the rise of 2007, when salaries were revalued by 7.3% just before the financial crisis broke out. However, behind this figure there is some small print, which is analysed today by…

CHILDREN

Spanish economy, Spanish Politics 17th November 2022

Births in Spain fall to 337,380 in 2021, the lowest figure in 80 years

The number of births fell by 1.2% in Spain in 2021 to 337,380, 3,935 fewer than in 2020, according to data from the National Statistics Institute (INE). It specifies that this is a new low since the beginning of the historical series, in 1941, 81 years ago. In recent years there has been a downward trend in the number of births. Since 2008, when the figure reached 519,779, the figure…

iberdrolaTC

Companies, Ibex, Spanish economy 17th November 2022

Iberdrola, attractive growth and high visibility; Buy (T.P. 12,50 vs 11,90 euros/share)

Bankinter | Upward revision to targets in the Strategic Plan 2025. Attractive growth and strong visibility in results. Iberdrola has revised upward the objectives in its Strategic Plan 2025. It now expects EBITDA in 2025 of 16.5-17.0 billion euros vs 15 billion previously, and NAP of 5.2-5.4 billion euros vs 5 billion previously. Average annual growth rate in EBITDA and NA`P in the period 2022-2025 will be between 8% and…

pallete telefonica

Spanish economy 16th November 2022

Telefónica reassures the hybrid market

Telefónica has placed a new €750mn green hybrid bond with a coupon of 7.125% and a call option exercisable between August and November 2028. At the same time, Telefónica has launched an offer to exchange any and all of the €1.5bn still outstanding on the two hybrids with calls in March and September 2023. Thus, by redeeming all of the outstanding bonds, Telefónica will reduce its outstanding hybrid balance by…

Private debt

Companies, Markets, Spanish economy 16th November 2022

Gross issues could grow 8% in 2023 to €830 B; with corporate issues rising 20%, banks up 1%

Santander Corporate & Investment | The rally in the secondary market will boost the primary market. This is a phenomenon which is not new. There are clear examples in 2009, 2012, 2019 and the second half of 2020, where the improvement in the markets translated into increases in gross issues of 115%, 78%, 37% and 17% respectively. We believe this pattern could be repeated in 2023, above all during a…

Amadeus

Companies, Ibex, Spanish economy 15th November 2022

Downward revision in Amadeus to take into account a more complicated macro backdrop; Hold (T.P. 58,5 vs 63,50 euros/share)

Renta 4 | Q3 figures have consolidated the trend towards a recovery of 2019 levels. The decline in revenues is close to one digit: -13% vs Q3’19 (-17% in Q2), EBITDA: -20%, also improves, +4pp vs Q2 (ex German government aid). That said, this recovery has been held back by disruptions in European airports and travel restrictions in Asia. Recovery continues in Q4, at a slow pace Reservations show a…

Aena

Companies, Ibex, Spanish economy 15th November 2022

With almost 24 M trips, Aena’s air traffic figures in October were down just 3% on 2019

Intermoney | Aena (Hold, T.P. 140 euros/share) announced is traffic figures for October on Friday. The company managed almost 24 million trips, 3% less than the same month in 2019. Last month, the dichotomy between the tourist airports continued. Palma (+5%) and Lanzarote (+11%)’s figures were well above pre-pandemic levels, while Barajas and El Prat airports’ figures are still on average 10% below those levels. In the year to date,…

Inflation Spain

Spanish economy 15th November 2022

CPI falls to 7.3% in October, with food up 15%.

The Consumer Price Index (CPI) increased by three tenths of a percentage point in October compared to the previous month and suddenly cut its year-on-year rate by 1.6 points to 7.3%. This is the lowest figure since January, just before war broke out in Ukraine, when the CPI stood at 6.1%, according to the final data published today by the National Statistics Institute (INE). The body has thus maintained the…

Colonial

Companies, Ibex, Spanish economy 14th November 2022

The Socimis are already trading at big discounts of 55%-65% to NAV due to rate hikes: BUY Colonial

Bankinter |The Spanish Socimis are facing a more than foreseeable downward adjustment to the value of their assets (GAV), in light of the hike in interest rates in the last few months and the potential recession. This decrease in the valuation of their portfolios will have an impact on accounting profit and on leverage, which could already be reflected in certain areas at end-year. Our analyst team’s view: Negative news,…