...Negative Outlook on Weakening Metrics: Fitch Ratings revised Grupo Aldesa's Outlook to Negative in August 2015 following the deterioration of its credit metrics beyond the agency's expectations. Fitch expects funds from operations (FFO) generation and margins to recover over the medium term, supported by organic growth from a growing backlog. However, we believe there is a risk that expected improvements in revenue and profitability will not restore a financial profile commensurate with a 'B' rating. The mild recovery of the Spanish construction market will only gradually ease pressure on the profitability of new projects. In Mexico, there is a risk the potential weaker demand from public bodies may not be fully offset by new projects with the private sector, for which margins are also typically lower. Poland is likely to remain a bright spot with strong macroeconomic fundamentals, where the construction sector also likely to benefit from a new EU funding cycle. Weaker Financial Profile:...
