InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative - Moody's Global Credit Research

InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative

InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative - Moody's Global Credit Research
InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative
Published May 11, 2021
10 pages (5332 words) — Published May 11, 2021
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Brief Excerpt:

...InfraBuild Australia Pty Ltd's (B2, negative) credit profile benefits from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. InfraBuild has maintained consistent production levels with sales volumes and utilisation rates improving. The ratings also reflect the company's cost reduction initiatives, the currently solid operating environment, and our expectation that government will look to use infrastructure spending as a tool to aid economic recovery. The company's credit profile also reflects the increasing potential for contagion risk from funding issues affecting the GFG Alliance Group (GFG) -- which ultimately owns InfraBuild -- following the collapse of Greensill Capital (Greensill). Additionally, we anticipate that liquidity, while adequate, will reduce on increased working capital usage to meet market demand and would be further reduced if ongoing supplier relationships and payment terms weaken...

  
Report Type:

Credit Opinion

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Issuer
InfraBuild Australia Pty Ltd
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Moody's affirms InfraBuild's ratings, outlook remains negative - Rating Action – 2023/03/06 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following rating downgrade to Caa1; outlook negative - Credit Opinion – 2021/12/16 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (Caa1, negative) reflects the increasing refinancing risk surrounding the maturity of its AUD250 million asset-based lending facility (ABL) due October 2022. If the refinancing is not completed ahead of maturity, we expect this would significantly reduce the company's liquidity buffer and flexibility to deal with any material downside to our current forecasts. However, Infrabuild's execution on its initiatives to improve its operating profile, combined with strong steel demand and pricing conditions in Australia, have supported strong earnings growth and an ongoing trend of improving credit metrics. Furthermore, the company's credit profile continues to benefit from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. The ratings also reflect the company's consistent production levels with improvement in sales volumes and utilisation rates. Furthermore, InfraBuild's credit...

Moody's downgrades InfraBuild's ratings to Caa1; outlook negative - Rating Action – 2021/12/08 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following rating downgrade to B3; ratings on review for further downgrade - Credit Opinion – 2021/10/06 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (B3, on review for downgrade) credit profile benefits from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. InfraBuild has maintained consistent production levels with sales volumes and utilisation rates improving. The ratings also reflect the company's significant working capital initiatives, the currently solid operating environment, and our expectation that government will look to use infrastructure spending as a tool to aid economic recovery. However, the company's credit profile also reflects the increasing refinancing risk surrounding the maturity of its AUD250 million asset-based lending facility (ABL) due October 2022. We view, the fact that the company has not completed its refinancing initiatives at least one year prior to its ABL maturity exposes it to material market risk and increases the likelihood of a liquidity shortfall if the refinancing is not completed...

Moody's downgrades InfraBuild to B3; ratings on review for further downgrade - Rating Action – 2021/09/28 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Moody's downgrades InfraBuild's ratings to B2; outlook changed to negative - Rating Action – 2021/05/06 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following one notch downgrade; ratings remain under review for further downgrade - Credit Opinion – 2021/03/18 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (B1, on review for downgrade) credit profile benefits from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. InfraBuild has maintained consistent production levels with sales volumes and utilisation rates improving. The ratings also reflect the company's cost reduction initiatives, the currently solid operating environment, and our expectation that government will look to use infrastructure spending as a tool to aid economic recovery. However, the company's credit profile also reflects the increasing potential for contagion risk from funding issues affecting the GFG Alliance Group (GFG) -- which ultimately owns InfraBuild -- following Greensill Capital (Greensill) entering into administration. We believe that this contagion risk could impact InfraBuild's operations, specifically its customer and supplier relationships, and may also increase demands on InfraBuild to raise...

Moody's downgrades InfraBuild to B1; ratings on review for further downgrade - Rating Action – 2021/03/11 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update to credit analysis - Credit Opinion – 2020/12/08 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's ("InfraBuild", Ba3 negative) credit profile benefits from improved liquidity position and solid operating performance in the first quarter of fiscal 2021. The company continues to benefit from its strong market position in steel long products in Australia, a vertically integrated business model with a flexible operating profile and a lower fixed cost profile relative to blast furnace operators. InfraBuild has maintained consistent production levels and was improving utilization rates, heading into the current downturn. The ratings also benefit from our expectation that governments will look to use infrastructure spending as a tool to aid economic recovery. InfraBuild's credit profile is constrained by the company's limited scale on a production and earnings basis, its exposure to volatile input costs and foreign exchange rates, the cyclical nature of steel prices and demand and its exposure to the construction segment in Australia, which faces uncertainty...

Moody's affirms InfraBuild's Ba3 ratings; outlook remains negative - Rating Action – 2020/12/03 – US$ 180.00 – ...ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications. To the extent permitted by law, MOODY'S and its directors, officers,...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative" May 11, 2021. Alacra Store. May 02, 2024. <http://www.alacrastore.com/moodys-credit-research/InfraBuild-Australia-Pty-Ltd-Update-following-rating-downgrade-to-B2-outlook-to-negative-PBC_1282039>
  
APA:
Moody's Global Credit Research. (). InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative May 11, 2021. New York, NY: Alacra Store. Retrieved May 02, 2024 from <http://www.alacrastore.com/moodys-credit-research/InfraBuild-Australia-Pty-Ltd-Update-following-rating-downgrade-to-B2-outlook-to-negative-PBC_1282039>
  
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