Ferrovial S.A.

Ferrovial has also reaffirmed its intention to keep the nonrecourse nature of the debt within its project-financed subsidiaries without cross-default clauses. This confirms our approach in assessing Ferrovial's adjusted credit ratios by focusing on its core construction division, as well as on dividends received from investments. And so, we will continue deconsolidating assets and liabilities from self-funded infrastructure projects in which the company is invested. The stable outlook reflects our view that Ferrovial will maintain adjusted FFO to debt of at least 45% over the next 18-24 months. We believe there is significant headroom under this threshold for the current rating, although we anticipate this could be eroded due to increased investments in the form of capital expenditure (capex) and

...We anticipate a progressive improvement in the profitability of the construction division in the next 2-3 years. Ferrovial S.A. (Ferrovial) maintained a resilient performance in its construction division over the first half of 2021, especially at Budimex. Total construction revenue grew by 6.3% on a like-for-like basis, supported by higher execution in the U.S. and lower comparison base last year as a result of COVID-19. Reported EBITDA stood at 112 million (versus 28 million in the first half of 2020, negatively impacted by provisions and one-off costs). Ferrovial remains committed to achieving its 3.5% EBIT target by 2024 in construction by developing greenfield projects, focusing on markets with a commitment to infrastructure projects, and exiting non-core businesses. The sale of the Budimex real estate business for about 330 million and URBISCA for 17 million were completed in the first half of 2021 and other disposals have been completed since then (for example: Nalanda for 17 million,...

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