Moody's downgrades InfraBuild to B3; ratings on review for further downgrade

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...

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...

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...

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...