...A Contrasting Picture: The outlook reflects a contrasting picture between stronger companies focused on improving revenue visibility and low-rated entities striving to repair their balance sheets. In both cases the actions taken should help mitigate existing or potential ratings pressure. Improving Business Diversification: Positively for the ratings, already strong issuers are looking to further improve their business profiles and risk management. Ferrovial and Salini are shifting towards more stable activities with higher revenue visibility and long-term contracts (services), and more stable countries where lower margins are mitigated by good cash-flow visibility. Fragile Group Structures: The weakness of the ring-fencing between the construction (typically recourse to the rated entities) and concession activities has become evident, especially for greenfield projects which require larger investments. OHL's recent EUR1bn capital increase, with the proceeds to be used to reduce the recourse...
