Moody's downgrades InfraBuild's ratings to Caa1; outlook negative

InfraBuild Australia Pty Ltd: Update following outlook stabilization and rating affirmation - Credit Opinion – 2023/06/22 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (Caa1, stable) credit profile continues to reflect our view that refinancing risks facing the company are ongoing until it directs recently obtained funding, or other financing alternatives, to address its upcoming senior secured notes maturity in October 2024. The company's credit profile benefits from recently demonstrated ability to raise additional external funding following the execution of a USD350 million 3-year senior secured asset-based term loan (ABTL). If the company decided to use the proceeds for refinancing, the size of the ABTL would more than cover the repayment of the existing USD325 million senior secured notes maturing October 2024, which would further support its credit profile and reduce refinancing risk. However, InfraBuild has stated publicly that the proceeds of the term loan will be used to pursue potential growth and that it is considering additional funding options. Therefore, we will continue to monitor the use of proceeds from...

Moody's changes InfraBuild's outlook to stable; ratings affirmed - Rating Action – 2023/06/19 – 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 following rating affirmation - Credit Opinion – 2023/03/09 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (Caa1, negative) credit profile reflects our view that material refinancing risk exists in relation to the maturity of its USD325 million of senior secured notes in October 2024. Furthermore, InfraBuild's proposed acquisition of Liberty Steel Group USA (Liberty USA), another entity independently owned by the GFG Alliance (GFG), will require successful financing. If successful, the completion of the acquisition will demonstrate InfraBuild's access to material external finance. However, we expect the proposed funding structure will also reduce liquidity, reflecting the addition of amortisation payments, and will encumber assets, which could have been used to help secure funding for a refinancing of the senior secured notes. Operationally, Infrabuild continues to perform strongly, which combined with strong steel demand and pricing conditions in Australia over the last 12-18 months, has led to material earnings growth and an ongoing trend of improving credit...

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...

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...

InfraBuild Australia Pty Ltd: Update following rating downgrade to B2; outlook to negative - Credit Opinion – 2021/05/11 – US$ 250.00 – ...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...

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...