...The rating affirmation reflects Webuild S.p.A.'s solid order backlog and the improvement in the construction market that Fitch Ratings expects in 2021 leading to a rebound in profitability and return in leverage to pre-pandemic levels. Fitch expects that the impact on Webuild's net leverage from the acquisition of Astaldi S.p.A. will be modest and the company will maintain a solid business profile, which Fitch regards as being in line with an investment-grade rating. Execution risk related to the Astaldi acquisition is partly offset by potential synergies and Webuild's knowledge of the target due to a large share of common projects in the order backlog. The Negative Outlook reflects limited rating headroom due to high leverage, coupled with short - term profitability pressures and reduced cash flow visibility due to the acquisition of Astaldi and the impact of the pandemic. A prolonged adverse market environment or problems with the integration of Astaldi could lead to higher-than-expected...
