...The dow ngrade of Milan-based engineering and construction (E&C) company Salini Impregilo S.p.a.'s (Salini) Long- Term Issuer Default Rating (IDR) and senior unsecured rating reflects its w eakening financial profile due to the combination of rising leverage, w eaker profitability and Fitch Ratings' expectations that w orking capital w ill increase. Fitch forecasts that funds from operations (FFO) adjusted net leverage w ill be around 3x in the medium term, w hich is commensurate w ith a low er rating. Salini's credit risk is supported by its relatively strong business profile, characterised by solid market shares, and extensive order book, w hich w e consider to be in line w ith an investment- grade rating. The Negative Outlook reflects the uncertainties and execution risk that the acquisition of Astaldi S.p.A (Astaldi) brings to Salini's financial and business profile. Fitch expects that the leverage impact on Salini from the acquisition w ill be moderate, as an equity contribution from...
