Bulletin: Salini's Proposed Acquisition Of Astaldi Could Cut Its Ability To Reduce Debt

MILAN (S&P Global Ratings) Nov. 16, 2018--S&P Global Ratings said today that Italian construction company Salini Impregilo's proposed acquisition of its Italian competitor Astaldi, which has filed for creditor protection, could impede Salini's ability to cut debt over the coming year. On Nov. 15, 2018, Salini Impregilo SpA (BB/Stable/--) presented a non-binding expression of interest to Astaldi and to court-appointed commissioners, saying it was analyzing a potential integration consistent with its financial objectives. We see limited room in the ratings on Salini to absorb any debt-funded acquisitions or investments, and we believe that any such activity may put significant pressure on the ratings. To preserve its credit metrics, we believe Salini would need to use the vast majority of the

...MILAN (S&P Global Ratings) Nov. 16, 2018--S&P Global Ratings said today that Italian construction company Salini Impregilo's proposed acquisition of its Italian competitor Astaldi, which has filed for creditor protection, could impede Salini's ability to cut debt over the coming year. On Nov. 15, 2018, Salini Impregilo SpA (##/Stable/--) presented a non-binding expression of interest to Astaldi and to court-appointed commissioners, saying it was analyzing a potential integration consistent with its financial objectives. We see limited room in the ratings on Salini to absorb any debt-funded acquisitions or investments, and we believe that any such activity may put significant pressure on the ratings. To preserve its credit metrics, we believe Salini would need to use the vast majority of the $555 million cash proceeds from the August 2018 sale of its subsidiary Lane Construction's Plants and Paving, expected to close by year-end, to reduce gross and net debt. This is because the sale of...

Bulletin