OREANDA-NEWS. Fitch Ratings has downgraded Institut Catala de Finances' (ICF) Long-term Issuer Default Ratings (IDR) to 'BB' from 'BBB-' and removed it from Rating Watch Negative (RWN). The Outlook is Negative. The Short-term IDR is downgraded to 'B' from 'F3'. The senior unsecured debt ratings have also been downgraded to 'BB' from 'BBB-'.

These actions follow similar rating actions taken on the Autonomous Community of Catalonia (see Rating Action Commentary dated 12 November 2015 on www.fitchratings.com).

KEY RATING DRIVERS
ICF's ratings are based on the explicit statutory guarantee from Catalonia following the regional Decree Law 4/2002, as amended on 29 July 2011. The ratings of ICF are therefore linked to the ratings of Catalonia.

As a 100% owned entity of the region, ICF is classified by Fitch as a credit-linked public sector entity.

RATING SENSITIVITIES
A change in the ratings of the Autonomous Community of Catalonia would be mirrored in the ratings of ICF.