Research Update: CIMIC Group Ltd. 'BBB-' Rating Affirmed On Increased Thiess Ownership; Outlook Stable

Australia-based construction group CIMIC Group Ltd. has increased its ownership in mining services business Thiess Group Holdings Ltd. to 60% from 50%. Elliott Investment Management L.P. continues to own the remaining 40% of Thiess. This transaction has reduced the group's structural complexity and increased the likelihood of CIMIC moving toward full ownership of Thiess. We now fully consolidate Thiess in our forecasts for CIMIC. Our base case assumes an adjusted debt-to-EBITDA ratio of below 2.5x for the next two years. We revised upward our assessment of CIMIC's business risk profile to satisfactory from fair. We also revised CIMIC's anchor to 'bbb-' from 'bb+'. This reflects the company's greater economic interest and operational benefits of majority ownership of Thiess. On May

...- Australia-based construction group CIMIC Group Ltd. has increased its ownership in mining services business Thiess Group Holdings Ltd. to 60% from 50%. Elliott Investment Management L.P. continues to own the remaining 40% of Thiess. - This transaction has reduced the group's structural complexity and increased the likelihood of CIMIC moving toward full ownership of Thiess. We now fully consolidate Thiess in our forecasts for CIMIC. Our base case assumes an adjusted debt-to-EBITDA ratio of below 2.5x for the next two years. - We revised upward our assessment of CIMIC's business risk profile to satisfactory from fair. We also revised CIMIC's anchor to '###-' from '##+'. This reflects the company's greater economic interest and operational benefits of majority ownership of Thiess. - On May 30, 2024, we affirmed our '###-' long-term issuer and issue credit ratings on CIMIC and its rated debt instruments. - The stable outlook on CIMIC reflects that on its ultimate parent, Spain-based construction...

Research Update