The bonds will be firmer today on more clarity in the timeline for the sale of the Services business. Expansion reports that a

OHLA’s desire to call the bonds places a floor at 100c/€ (the call price); the bonds should move higher on this news (they currently trade at 94%). The bonds are

A small positive for the bonds, but we have heard of sale plans for Canalejas for a long time. We take some comfort from Luis Amodio’s

The sale has been expected, so any impact on the SSNs should be marginal. After failing to get traction in changing governance

Disputes over contracts are part of OHLA’s business, and Peru has a long history of cancelling contracts for flimsy reasons. Any settlement

The loss at arbitration should close the case over a road construction and maintenance contract in Kuwait. The

OHLA needs to refinance its (€45m) share of the Canalejas gallery; we would have thought the existing lenders (Santander and CaixaBank) would be

The signing of the Canalejas deal on time and without last-minute changes is a pleasant surprise from OHLA; although, when announced in

OHLA has requested that Moody’s cease covering it, leaving Fitch as the sole agency providing ratings on the company. The direct impact on

The decision to split the Canalejas assets paves the way for OHLA to dispose of its share. We estimate the on-site 4 Seasons Hotel to be worth

Fitch’s B- corporate rating will help OHLA, as Moody’s Caa1 family rating excludes some investors from participation in the

The contract wins in the US are positive, but ensuring the growth is profitable is another question. OHLA has given management at

The USD20m judgement is appealable, so there is no immediate impact on liquidity. The award is USD16.4m plus interest (the interest rate is

OHLA clearing itself of any corporate governance wrongdoing is no surprise. The release highlights that the additional information

The settlement of the Sidra litigation is a significant weight off OHLA. A potential liability of over €200 million has weighed heavily on OHLA since its

José Elías failed to get any traction in opposing the Amodio brothers at the AGM. What Elías does now is unclear, but we

Getting €45m of cash from Qatar (relating to the Metro contract) is a significant boost to liquidity. The Sidra has not yet been

The Canalejas mediation will cost OHLA €6m rather than the €40m claimed by Mohari; we had seen the result of the mediation, but now we

The banks are not happy with governance at OHLA. The relationship between the Amodio brothers and their lenders has been poor, and the

Concern over liquidity resulted in the downgrade to Caa1. Moody’s review provides some clarity around the reason for the cash raise,

We believe the Canalejas arbitration was always a price negotiation; the settlement should pave the way for the asset to be sold

The amount of cash is less important than the fact that the banks are not convinced that transparency at OHLA has improved after the

The interview with the OHLA CEO contained some new information. If OHLA loses the Qatar (Sidra) case, it has the cash to pay, and

José Elías's taking a bigger stake in OHLA would be better for corporate governance, but we would not expect him to be able to